Exeter Investments is respond- ing to queries into its split cap trust business raised by a law firm...
Exeter Investments is respond- ing to queries into its split cap trust business raised by a law firm looking into potential misselling in the sector.
In total, Class Law is investigating 31 different management groups, intermediary firms and stockbrokers for potential misrepresentation of the risk in highly geared split capital trusts and so far claims 1,700 investors have come to it seeking redress.
The law firm has sent Exeter a letter on behalf of two clients requesting further information on its Zero Preference Fund, a unit trust of zeros, and Selective Assets Progressive Growth investment trust.
Selective Assets was originally the Exeter Preserved Capital Trust, which wound-up at the beginning of 2001 and one of the client's of Class Law invested in the trust when it was Preserved Capital. As such Class Law will examine the prospectuses of both trusts to take a view on whether they were misleading.
The other Class Law client was invested in the fund of zeros. Philip Thitchener, marketing director at Exeter, said the group is in the process of responding to Class Law and providing the information that it requires.
Thitchener said that Exeter never promoted the zero fund as low risk in its adverts but it was promoted in the group's literature as low-risk in context of its other funds.
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