28 May 2009

ING makes new offer over frozen funds

1:05 pm on 28 May 2009

ING New Zealand has amended its offer to investors in two of its frozen funds for a second time.

ING's Diversified Yield Fund and Regular Income Fund, which were advertised as low-risk, were frozen last year as their values collapsed amid the credit crunch.

The firm's initial offer raised the ire of investment advisors, who said it could return as little as 15 cents in the dollar.

It then made a second offer in February which involved paying investors in the two funds 60 to 62 cents respectively now, or 83 to 86 cents in five years' time.

ING has now revised that offer for a third time.

The option for money now remains the same but those willing to wait will have their money transferred to a special on-call ANZ account, which will attract 8.3% interest per annum for 5 years.

In return, investors must agree not to start or continue any legal action related to the funds.