ING unveils new rescue plan for CDO funds

Under the latest proposal investors can get a guaranteed return in five years’ time or they can cash out now at a lower price.

The company has dumped an earlier proposal where it planned to make a $100 million non-recourse loan to investors, which would be repaid as the funds were wound up. Any remaining funds from this process would be returned to investors over time.

ING New Zealand chief executive Helen Troup said the company had received a lot of feedback on the earlier proposal and decided to come up with something new.

Under the proposal announced yesterday, investors in the Diversified Yield Fund (DYF) and Regular Income Fund (RIF) will be given two choices. They can choose to be guaranteed a minimum price in five years’ time for their units or they can cash out of the funds at a lower price now.