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Swipe at Swip over Euro fund boasts in ads

IFAs have slammed Scottish Widows Investment Partnership for continuing to boast about its European fund&#39s performance despite the departure of star fund manager Albert Morillo more than nine months ago.

Swip is undertaking a marketing drive for the fund, including adverts in the national press and IFA mailshots.

The ads boast that a £7,000 investment in February 1986 would now be worth £85,190. But IFAs claim these figures reflect the management of Morillo, who left Swip to join US fund manager Black Rock at the end of last year and who currently also manages Investec&#39s European fund. Another member of Swip&#39s European team left at the same time.

Since Morillo&#39s departure, the fund, now managed by Fiona MacRae, has seen poor performance. Over one year, it is ranked 49th out of 99 in its sector and 77th out of 103 over the past three months.

Unit trust marketing manager Ellen Crabtree says: “The fund has always been managed as a team fund. We have never embraced the star fund manager concept even though Albert was very well known. Fiona has been in the team since 1991 and we feel it is perfectly acceptable to advertise the past performance.”

Hargreaves Lansdown investment director Ben Yearsley says: “If the whole team has changed, you should not really be advertising the past performance. It is not a true representation, especially in light of the FSA stating past performance is no indication of future performance.”

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