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Barclays admits error over Aviva fund

Barclays has admitted it incorrectly categorised the Aviva global balanced income fund as balanced, rather than adventurous, between July and November 2007.

Last week Money Marketing revealed that Barclays advised clients who were approaching or in retirement to transfer their long-term savings into the specialist fund.

The fund has fallen 45 per cent in the 12 months to March 2009.

Responding to questioning from Money Marketing, Barclays has revealed it categorised the fund as balanced in error after a new framework for assessing risk was introduced at the bank.

In July 2007, Barclays says it reviewed and categorised all of its third party funds in accordance with the new framework.

Barclays says: “Due to an error, the Aviva (previously Morley) global balanced income fund was categorised into our new balanced category, rather than our new adventurous category, where it should have been placed.

“This error was identified in November 2007 and we proactively contacted all affected clients to sort it out, providing them with several options moving forward.”

Barclays insists that it calculated the amount each individual’s investment had underperformed against a benchmark equivalent for a balanced fund and offered to restore investors to the position they would have been in had they been invested in a balanced fund.

Barclays also says it offered investors information about alternative funds and withdrawing their investments at that time.

However the investors that have contacted Money Marketing insist they were never compensated for any loss, or informed of the classification error.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Mr Tony & Mrs Jean Perfect 20th April 2010 at 3:11 pm

    Dear Sir/Madam
    On 19th.Dec.2006, we invested £300,000. with Barclays Financial planning representitive (Mr.Gerry Curren). The invested amount was split between three companies i.e.Norwich Union, Morley global and AXA.
    As pensioners in our 70’s, it was always stated we wanted to invest cautiously, but as one of the investments has gone from approx.£411. per month to £263. per month, we are very concerned as the amount of paperwork we have on the investments is not at all clear to understand, and with all the bad publicity in the press over the last year regarding Barclays, we would appreciate any advice you can give us.
    Yours sincerely
    Jean & Tony Perfect

  2. Mr Tony & Mrs Jean Perfect 20th April 2010 at 3:17 pm

    Having just submitted an E Mail to you, I have noticed I gave you our E Mail address wrongly.
    Please note, the correct E Mail address is as above. Thank you in anticipation of your help and early reply

  3. We joined Morley balanced income fund 2007, and my partner and i had lost quite a lot, and had no notification over this matter whatsoever.

  4. Barclays wrote to me in February 2011 apologising for selling me this product and were reviewing my investment via a third party firm of accountants. I have heard nothing since!

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