Schroders warns of fake fund scam

Schroders has warned that fraudsters are approaching investors to promote a fake fund using the firm’s name.

Schroders says investors have been contacted by phone and email about a fake fund called “Schroder Investment Limited Guaranteed Bullion and Commodities”.

The warning comes after Money Marketing, Fund Strategy’s sister publication, revealed last month that Octopus Investments Venture Capital Trust shareholders had been contacted as part of a boiler room scam.

The Financial Services Authority (FSA) has this year warned of a rise in boiler room frauds, in which scammers cold-call investors offering worthless or fake shares, but the Schroders warning suggests they are branching out into fund sales. (article continues below)

Schroders urges investors who have been approached to contact the company or the City of London fraud squad.

A statement says: “This is not a fund of Schroder Investment Limited, Schroder Investment Management Limited or any subsidiary of Schroders plc. Any funds invested with regard to this offer will not be invested with Schroders.”

In May, the FSA warned that a list of over 38,000 investors’ contact details was being used by boiler room scammers.