ING closes another fund and delays CDO fund meeting

The news comes at the same time as the group has decided to close another fund managed on behalf of a group of advisers – the $6.5 million Private Portfolio Service (PPS) Diversified Trading Fund.

In a letter to unitholders sent this week, Helen Troup, ING NZ chief, said the company had received “valuable feedback” from investors and advisers about its proposals to wind up the Regular Income Fund (RIF) and the Diversified Yield Fund (DYF) and provide an immediate $100 million loan to investors.

“... it is now apparent that meeting that date is not realistic if we are to review, and potentially incorporate, the feedback we have received into the proposal, provide documentation to both you and advisers, and give you enough time to consult with your adviser regarding the details of the proposal,” Troup said in the letter. “We certainly share your disappointment in the performance of these two Funds and the challenges we have encountered in developing a proposal for you. However, please be assured that it is our priority to find a resolution that is in the best interests of all investors, taking into account the current market conditions.”

While no date has been set down for the meeting to decide the future of the RIF and DYF products Troup said investor and advisers would be sent “regular updates and information”.