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Fund firms slammed for figures used in ads

IFAs have criticised some of the UK&#39s top fund managers for using what they claim to be misleading past performance figures.

Scottish Widows Investment Partnership&#39s European fund advertising has been highlighted after+ the departure of star fund manager Albert Morillo more than a year ago.

Swip&#39s ad says a £7,000 investment in the fund in February 1986 would now be worth around £85,190.

But it fails to mention that since Morillo&#39s departure to US fund manager Black Rock in December 1999, the fund has fallen to the bottom quartile of its sector.

Money Marketing highlighted the ads six months ago but Swip insists its fund is run on a team approach.

Merrill Lynch Investment Managers is to build its advertising campaign around its UK dynamic fund, highlighting both its past performance and Standard & Poor&#39s rating. But the fund&#39s lead manager left MLIM two months ago and the fund rating is under review.

Head of retail marketing Rick Andrews says: “The team is still in place. Everything we do at Merrill Lynch is very much based on the team approach. We do not expect to see a change in the rating.”

Jupiter now qualifies whether a fund has seen a recent manager change in the small print of its ads after media accusations that its marketing was misleading.

Hargreaves Lansdown investment manager Ben Yearsley says: “It is the old story of lies, damn lies and statistics. You can make anything seem wonderful if you pick the right time period. Treat anything you read in these sort of adverts with caution. They can be very misleading.”

Investment, p26


C&G cuts fix and cap rates

Cheltenham & Gloucester is cutting rates on its capped and fixed-rate mortgages by 0.2 per cent across the board. The rates are available to new customers and existing borrowers paying the bank&#39s variable rate of 7.5 per cent. Borrowers can fix their mortgage for two, three or five years at rates of either 5.79 per […]

iShares – iBloomberg European Financials

Tuesday, 3rd April 2001.Type: Exchange traded fund.Aim: Growth linked to the Bloomberg European investable financials index.Minimum investment: Subject to negotiation with stockbroker.Maximum investment: None.Investment split: 100 per cent linked to the Bloomberg European investable financials index.Place of registration: Ireland.Isa link: Yes.Pep transfers: Yes.Charges: Annual 0.5 per cent.Commission: None.Tel: 0845 3577000. 

Burdett and Potter to leave Rothschild Asset Management

Robert Burdett and Gary Potter are leaving Rothschild Asset Management to join Credit Suisse Asset Management. Burdett and Potter, who run the Five Arrows Private Portfolio Service, leave in June, when RAM&#39s head of asset management Philip Barleggs and chief investment officer David Kiddie will take over responsibility for the Five Arrows Private Portfolio Service […]


Aifa fears over ombudsman fundingAifa has expressed concern about the proposed funding structure for the Financial Ombudsman Service in its response to the FSA&#39s consultative paper. Aifa says only 15 per cent of complaints handled by the service derive from IFAs and most have never faced direct costs for the FOS and it must demonstrate […]


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