New Split Cap Action Launched
It emerged at the weekend that a new class action suit has been brought against
several fund managers involved in the mis-selling of split-cap investment trusts. Although investors with zero dividend shares who lost money when several of
the highly geared, and therefore high risk vehicles collapsed are being compensated
via the FSA's Fund Distribution Limited scheme, those with ordinary or income
shares in split cap trusts did not qualify. Speaking to The Business Online news service, Stephen Alexander, senior partner
at Class Law, the firm appointed to bring the group litigation, observed that: "It's bizarre really. They were advised as low-risk investors to buy high-risk
shares in geared companies - so they were mis-sold yet assured they were safe
as a Volvo." The GBP25 million claim is being made on behalf of 75 investors. However, many
more are expected to join the action. .
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