You are here: Home - Investing - Experienced Investor - News -

Aviva admits to fund marketing error; compensates investors

0
Written by:
01/12/2014
Aviva is to pay compensation to tens of thousands of investors in one of its funds who were erroneously led to believe their capital was protected.

The group is to pay about 40,000 investors in the Aviva Deposit fund an average of just over £55, meaning the company is set to pay out some £2.2m, according to the Telegraph.

Aviva admitted literature accompanying the fund suggested the value of customers’ money could not fall below the amount they had invested. 

Yet, since 2009, the fund has lost 2.3 per cent, according to figures provided to the Telegraph by FE Trustnet.

Aviva, which said it uncovered the error following a company-wide review, blamed the fund’s performance on record low interest rates.

Aviva chief operating officer Kevin Moss is apologising for the error in letters which are being sent to affected investors.

A spokesperson for the company told the Telegraph: “As part of our continual review of our products we are currently mailing our Aviva Deposit fund customers to emphasise that their investments can fluctuate according to market conditions, and that these type of funds are intended as a shorter-term investment,” she said.

“As part of our review we also identified that although our terms and conditions were correct, we had [implied] in some of our older marketing literature that customers’ funds would not fall below the amount they had invested. This was not correct and we apologise for any misunderstanding.”

 

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FTSE 100: This morning’s risers and fallers

The UK stock market started the new week on the back foot after yet more disappointing economic data from China...

Close