ING and LM Investments battle over fund redemption
The PPS fund currently has half its money with three managers; Australian-based LM Investments, Equitable and the Portfolio Management Group. The other half of the fund is in cash.
Head of the investment committee, Jeremy Thompson, says there are concerns over the ability of LM to repay the money in its LM Currency Protected Australian Income Fund.
He says ING requested to redeem all its $10 million investment with LM back in September, however it had been told that the redemption wouldn’t be made until September this year, and that a A$150 million first ranking secured credit facility to Commonwealth Bank of Australia had to be repaid first.
LM is scathing about the decision and says it is quite within its rights to delay redemption requests.
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