ING suspends NZ funds’ payouts because of turmoil

The New Zealand arm of Dutch financial group ING said on Wednesday it was suspending withdrawals from two investment funds worth $521 million because of the global credit market turmoil.

It said the funds – the diversified yield and regular income – invested largely in credit securities, which had been hard hit by the subprime market problems and falling US house values.

“The decision reflects the impact of extreme conditions on our ability to reliably price assets and maintain liquidity as well as investor equality, it is not an indication of credit quality,” ING New Zealand’s chief executive, Marc Lieberman, said in a statement.

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