IFA reports L&G to FSA over past performance stats

A financial adviser has reported Legal & General to the FSA over claims it misrepresented the past performance of its £2bn High Income trust by smoothing out price movements.

The complaint stems from L&G's decision to restate the past performance of the fund - which is open to institutional investors - after altering its pricing structure. Last June, the fund moved from a 'single swinging' to a 'dual price' basis. On the single price basis, all transactions on a given day were at one of two prices - either the offer (buying) price or bid (selling) price, depending on whether there was a net inflow or outflow on that particular day. This meant a possible daily swing of up to 5% in the unit price as it switched from a bid to an offer basis. Under the d...