An inquiry has been launched into the handling of investment funds by Morgan Grenfell, which ranks fourth in the to...
An inquiry has been launched into the handling of investment funds by Morgan Grenfell, which ranks fourth in the top local authority pension fund manager league table.
The Financial Times reports (p1) that trading in three unit trusts managed by the firm were suspended yesterday.
The paper says the investigation is potentially a serious upset for the UK unit trust market.
The investigation centres on the valuation of investments in unquoted continental European companies.
The funds affected comprise two unit trusts - the European Growth Fund and the Morgan Grenfell Europa Fund - and a Dublin-registered investment fund, called the Morgan Grenfell European Capital Growth Fund, the FT reports.
Meanwhile, the BBC reports that £1.4bn had been held in the funds on behalf of 90,000 investors.
And the firm has assured clients that they will be compensated for any loses they may incur.