Current news for this fund:
ING Diversified Yield, Regular Income, etc. - CDOs, etc.
Count of distinct funds: 4
The funds described in our initial writeup, Diversified Yield and Regular Income, will now be wound up, along with two other funds:
When we first wrote about Diversified Yield and Regular Income back in March, the losses were said to be in the range of 25-30%. Now, the four funds (which still seem to consist most of the first two) are valued at around 50%. And the assets are still being sold...
Ailing writeup, March 12, 2008:
ING has been forced to suspend withdrawals from two finds after a minority of nervous investors headed for the exits. The Bloomberg article cited above has more:
ING claims "most" of the fund contains higher-quality assets, with only 10% in subprime and 6% in CDOs. Displaying a common paradox, ING is planning on selling some of the higher-quality holdings to meet withdrawal request, which of course will push the prices for those assets down, explaining much of the market action we are seeing. ING like does not want to liquidate the CDOs or subprime because it is hoping the values will come back—or perhaps the quotes on those assets are no so low, they would not be enough to meet investor withdrawals.
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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.