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Fund statements raise investors&#39 fears

IFAs and fund managers have been inundated with calls from worried

investors over the past few weeks as many got their first fund valuation

letters of the year.

Most investors will have seen the value of their funds fall over the past

12 months, with the average unit trust falling by around 15 per cent in the

year to April 5. The average investment trust fell by around 7 per cent

over the same period.

Valuations are carried out at the end of each tax year and the start of

October. However, there is usually a delay of several weeks while they are

pro-cessed and sent to investors.

Ironically, many funds recovered strongly since the end of the tax year,

which will not be reflected in the statements.

Between April 5 and April 30, Aberdeen&#39s technology fund rose by 31.4 per

cent on a bid-to-bid basis, according to Lipper. However, over the six

months between investors&#39 last valuation in October and the end of the tax

year, it had fallen by 61.4 per cent.

Hargreaves Lansdown inv-estment manager Ben Years-ley says his firm has

had increased call volumes over the past few weeks.

He says: “It is up to IFAs to point out to investors that there has been a

considerable recovery since the end of the tax year. By the time investors

got their statements, valuations were a lot better, especially within

tech-based funds.”


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