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Which? hunts down four fund firms over ad claims

Which? magazine has “named and shamed” four fund firms over what it claims are misleading ads.

It claims Foreign & Colonial, JP Morgan Fleming, Aberdeen and Gartmore are running confusing ads and says the ads flout FSA rules.

Which? says F&C compared the returns on its equity-linked savings plan with building societies without stipulating the levels of risk.

JP Morgan Fleming is attacked for advertising its range of investment trusts, using the headline rates of its best-performing trust.

Aberdeen&#39s progressive growth fund ad is blasted for showing the fund had outperformed the FTSE All Share index since launch while the figures used were two months out of date, during which time returns plunged.

It says Gartmore&#39s ad appears to claim its stable growth fund offers a guaranteed ret-urn of 7.5 per cent although there is no guarantee.

Which? head of money research Ashley Sharpe says: “We think it is appalling that some companies are still trying to sell investments while hiding the full story behind their ads.”

Gartmore communications executive Kimberley Robin-son says: “The advert was compliant with promotional rules prior to N2. The wording rock solid was a play on words and not meant to mislead.”

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