Investors call for ING fund probe

Investors in ING's frozen credit funds are calling for the Securities Commission to investigate the funds and suspend the fund manager's proposal talks until all investigations are completed.

ING last week unveiled its "final offer" to investors who have had their money locked into the fund manager's Diversified Yield Fund (DIF) and Regular Income Fund (RIF) since March 2008.

The company is offering to pay out 60c per unit to DIF investors and 62c to RIF investors or to invest the money in an on-call cash account paying 8.3 per cent interest for five years.

The funds were originally issued at $1 per unit and were worth more than $500 million when frozen.

They have since fallen in value to less than 20c a unit or $143 million.

But those who agree to the deal by the July 13 deadline must also sign a waiver to not pursue claims or legal action on the funds.

That has angered some investors and advisers who say the condition is disgraceful and has destroyed the credibility of the company.

A group of financial advisers has already written to the Securities Commission requesting an investigation and now the Frozen Funds investor group has urged its members to do the same.

Gerard Prinsen, a spokesman for the group, said a number of investors had already complained to the Securities Commission in the past few weeks and it felt a drafted letter would help others to do the same.

The letter states that investors believe both ING's options violates their rights and requests the commission to suspend the proposal until official investigations are completed.

The Commerce Commission began an investigation late last year.

But there has been no indication as to when it will be completed.

Investors are concerned if they sign the waiver and the Commerce Commission rules against ING and its 49 per cent stakeholder ANZ they will not be able to claim any further compensation.

A spokesman for ANZ last week said he expected investors would not be able to take legal action even if the commission ruled against itself or ING if they signed the agreement.

A spokeswoman for the Securities Commission confirmed it had received a number of complaints about the ING funds but understood the proposal had yet to be finalised.