Someone should remind Cullen….

ING forced to put freeze on two funds – 13 Mar 2008 – NZ Herald: New Zealand Business, Markets, Currency and Personal Finance News

Someone should remind Cullen that he said the sub-prime problems wouldn’t affect New Zealand, then show him this article from the NZ Herald.

Investment manager ING has been forced to suspend withdrawals from two of its funds in one of the global credit crunch’s first direct hits on Kiwi investors.

The indefinite suspension of withdrawals from the $353 million ING Diversified Yield Fund and the $168 million ING Regular Income Fund is effective from today. ING is also not selling any more units in the funds.

Both funds invested primarily in debt securities which have been hit hard by the credit crisis.

One investor who had tried to get her money out of the Regular Income Fund instead received a letter from ING informing her of the suspensions. “The fund has experienced an unusually high level of withdrawal requests in recent months,” ING wrote.

The 85-year-old woman put $300,000 into the Regular Income Fund 18 months ago and has since lost $60,000 on the value of her investment. “I thought I’ll get out of it while the going’s good.”

The woman said it was “maddening” that she was now being forced to ride it out.

Great, not affecting us but you can’t get your own money out if you try. Good one Cullen, and you think you can be leader of the Labour party?

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