ING allows partial thaw of frozen funds

ING New Zealand has increased the options for investors locked into two funds worth more than $500 million.

Last month about 8000 investors in the Diversified Yield Fund and Regular Income Fund were offered the choice of cashing out at a lower rate now or waiting five years for a higher level guaranteed by the company.

Those who choose to cash out of Diversified Yield now were offered 60c a unit, or 83c if they waited five years.

Regular Income investors were offered 62c now or the promise of at least 86c a unit in five years.

But yesterday ING said it had decided to allow investors to split their choice. They can either take 25 per cent of the cash now and leave 75 per cent for later, split it 50/50 or take 75 per cent of the cash now and leave 25 per cent for later.

ING New Zealand chief executive Helen Troup said the change was in response to investor feedback.

"Although we are still developing the detail of our formal offer, we are continuing to communicate directly with investors and their advisers as and when we have new information."

The proposal will go to ING's trustee next month for approval and will then go out to investors in May before a series of investor meetings
in June.

The funds have been frozen since March last year after they run into liquidity problems.