View more on these topics

&#3950,000 lost split cash as IFAs did not know risks&#39

Up to 50,000 investors have lost money through the collapse of split-cap investment trusts because most IFAs were una-ware of the risks involved, according to Labour MP and chairman of the Treasury select committee John McFall.

Writing in this week&#39s Money Marketing, McFall attacks some of the “leading firms” involved in marketing the trusts for refusing to acknowledge the crucial role they have played as the crisis deepens.

The all-party committee has been holding a high-profile inquiry into the roles played by fund managers, brokers, the AITC and the FSA into the implosion of split caps.

Referring to splits as “Frankenstein&#39s monster”, McFall says those who created it were simply interested in pro-fit, not the welfare of investors&#39 money.

He says fund managers are guilty of producing a “lethal cocktail which blew up in people&#39s faces while they walked away with their millions in bonuses earned on the back of a disastrous performance”.

McFall says: “If the industry does not introduce measures to clean up its act, legislation or some kind of FSA regulation might be necessary. It is critical that the need for swift and effective action is impressed upon the industry.”


Intelligent approach

Scottish Mutual&#39s multi-manager portfolio service, Investment Intelligence, provides access to three pre-packaged funds from its sister company Inscape. Or investors can choose from a range of six multi-manager funds from institutional fund management group Attica.Assessing how II fits into the market, Gilbey says: “It is a sophisticated, flexible and structured multi-manager investment option within the […]

Real message of the pension age debate

The transition to a state pension age of 65 for women to equal that of men will not be complete until 2020. Yet we are already debating a further rise in state pension age for both sexes.The Institute for Public Policy Research proposed 67 in June. In September, the Pensions Policy Institute published a detailed […]

DWS finds opportunities in the UK

DEUTSCHE ASSET MANAGEMENT DWS UK OPPORTUNITIES FUND Type: Oeic Aim: Growth by investing in UK equities Minimum investment: Lump sum £1,000, monthly £25 Investment split: 100% in UK equities Isa link: Yes Pep transfers: Yes Charges: Initial 4.25%, annual 1.5% Commission: Initial up to 3% Tel: 0800 917 0005 The panel: David Flowers, director, Ronald […]

Isis tops up baronsmead

Isis Equity Partners is seeking a £14m top-up investment for its baronsmead venture capital trust (VCT), allowing it to make between 10 and 20 additional investments.This generalist VCT was established in 1995 and aims for long-term capital growth by investing in a portfolio of around 50 companies. Some of these will be listed on the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment