Investors seek millions from AIB over fund losses

Investors in a €128m AIB property fund are seeking millions in compensation for alleged mis-selling by the State-owned bank.

Cork-based legal firm Michael Powell Solicitors has signed up 40 investors in the AIB Alpha Japan Fund who believe they were mis-sold investment of up to €1m each because the currency exposure risk was not fully disclosed to them.

AIB rejects claims it mis-sold the investment.

Solicitor Sean Durcan said the bulk of those who invested in the fund were from the Munster area and borrowed in Japanese yen to invest in the fund. However, the bulk of the fund’s assets were in fact held in euro resulting in massive losses for clients.

Mr Durcan said while AIB contends that yen loans were not part of the package in investing in the Alpha Japan Fund, the evidence from all of his clients contradicts this.

Mr Durcan said it made no sense to borrow in yen if the fund was to be in euro.

In a statement AIB said the fund was clearly highlighted in the relevant documentation as being a high risk investment.