Two more ING funds closing

It says that it is to wind up the $27 million Enhanced Yield Fund (EYF) and the $8 million Credit Opportunities Fund (COF). ING NZ chief executive Helen Troup says there is no investor demand for credit funds, and some such as the COF were seeing large levels of redemptions. For instance ING received redemption requests worth $1 million for the EYF fund on Tuesday.

It hadn’t helped that research house Morningstar recently put an “avoid” warning on COF.

“These two funds were established in a fundamentally different market environment from the one the world now finds itself in. The financial world has changed dramatically for all of us,” Troup said.

She said in October and November credit fund markets “crashed”.