ING Funds Management (INGFM) will have to pay out the redemptions of its cash fund despite the fund being terminated, a judge has ruled in the New South Wales Supreme Court.
In February, court action was taken by ING Funds Management (INGFM) with ANZ Nominees and Professional Associations Superannuation Limited (PASL) selected as representative defendants regarding a temporary redemption halt on its investments in the ING Wholesale Enhanced Cash Trust and ANZ Cash Plus Fund.
INGFM had temporarily suspended the funds to protect the interests of the members, including ANZ Nominees and PASL. This had the effect of preventing ANZ Nominees and PASL to redeem their units in the fund as the market experienced significant turmoil in late 2008.
INGFM said the temporary redemption halt was necessary due to the tightening of credit markets.
Subsequently, the members voted to terminate the Wholesale Enhanced Trust in February.
Justice Barrett ruled in April that INGFM had no power to amend the terms of its Trusts constitutions as it affected the rights of investors in the fund.
The practical effect of the decision was that INGFM would have to pay investors in the fund at the November 2008 unit price and that this should not be altered by the February termination of the fund.
All redeeming unitholders have been paid and the matter is at an end.
