Tuesday, April 22, 2008

Funds frozen? Well, here's some sympathy...

How touching! ANZ National Bank chief executive Graham Hodges says he "feels" for his customers who have had their money frozen in two ING investment funds, but says they were properly advised of the risks.

Repayments of $520 million in the ING Diversified Yield Fund and the ING Regular Income Fund were suspended in mid-March, leaving 8000 investors unable to withdraw their money. They have continued to receive interest.

The combined value of the two funds had fallen a further 11 percent to $463 million by the middle of this month.

ING has said the suspension will not be lifted until international financial markets have settled down and the funds can again be accurately valued.

Some ANZ National customers have complained to the Banking Ombudsman that they were approached by bank staff and persuaded to shift their money from term deposits to the funds. ANZ National owns 49 percent of ING.

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