ING New Zealand to close Enhanced Yield Fund

PRESS RELEASE

Auckland, 10 December 2008

ING New Zealand to close Enhanced Yield Fund and Credit Opportunities Fund

ING New Zealand announced today that the ongoing global market crisis has led to the decision to wind up the $27 million Enhanced Yield Fund and the $8 million Credit Opportunities Fund. The two retail products were marketed together as the 90 Day Plus Range.

“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,” said Helen Troup, ING New Zealand CEO.

The market events in October and November have resulted in declining demand for the Enhanced Yield Fund and the Credit Opportunities Fund. Additionally, these events resulted in increased illiquidity in credit markets, which has led to difficulty in selling assets to fund withdrawals, and to difficulty in reliably pricing some assets.

No further withdrawals or applications will be processed for either fund. The funds are to be closed and wound up.

“Both ING and the Trustee recognise the significance of this decision which has only been reached after careful consideration of the situation,” Troup said. “Severe deterioration of market conditions during October and November has necessitated taking action on these two funds now to protect the interests of investors.”

In the new year, unitholders in the two funds will be asked whether they wish for the funds to be wound up as soon as possible given current market constraints, or over time on a managed basis with greater flexibility over when the assets are sold.

The unitholders are being advised of this decision and will be provided with additional information early in the new year to assist them to assess the wind-up options.

Ends

© Scoop Media