ING/ANZ make $400m final assault on CDO funds

In the offer released this morning ING/ANZ gave investors in the Diversified Yield Fund (DYF) and Regular Income Fund (RIF) three choices: cash-out now under the same terms as previously - ie a unit price the DYF and RIF of 60c and 62c respectively; a new five-year option where investors can sell units at the cash-out price with the proceeds transferred to a no-fees ANZ on-call account with an interest rate of 8.3%, or; hang onto existing units in the hope that the underlying investments will improve.

Under the previous ING offer the two CDO funds were to be wound up, requiring a unitholder vote, with a guaranteed five-year unit price of 83c for the DYF and 86 cents for the RIF. According to ING/ANZ estimates, the new five-year offer will see investors receive a gross return of 91c for DYF units and 94c per unit for the RIF.

However, if investors choose to accept the cash-out and five-year offers they will forfeit any claims to further legal action against ING or ANZ.

"... you will be required to give a release whereby you settle and release all claims, currently known and unknown, in connection with that fund and your investment in it," the ING/ANZ  offer summary says.