The Endowment Diary

The Endowment Diary

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The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Wednesday, June 08, 2011

The £300BN With Profits Scandal

The Telegraph reports that there is over £330BN sitting in the now discredited with profits (a misnomer if ever there was one) investment funds.

Investors were duped into putting money into these funds on the false promise of high returns that would pay pensions, cover mortgages and provide a nest egg.

Money Management claim that these useless funds have grown by an average of 1.7% per annum over the last 10 years. Higher returns would have been achievable simply by putting the money into a savings account.

Those with money in these useless and underperforming funds are, in effect, trapped as the exit fees are extortionate.

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