Working Lunch viewer Linda Fox is one of many investors left disappointed after being told they'd receive "no less" than their original investment in Aberdeen Progressive Growth fund.

She sank �6,000 in Prolific Income, an investment trust managed by Aberdeen and in 1999 the value of the holding exceeded �10,000.

A year later, another Aberdeen-managed trust, St David's, took over Prolific Income.

But St David's turned out to be high risk and since the change Linda's investment has plummeted to little more than �500.

"I feel so angry," says Linda.

"They're supposed to be professionals. When I was working as a professional nurse I would have been struck off with a record like that."

Split caps

Split capital investment funds offer a variety of shares for customers who want a mix of income and growth from their money.

Linda's investment virtually disappeared

The trusts experiencing the worst losses borrowed heavily and then invested in the shares of other, similar split caps.

If one prospered, all prospered - but when stock markets fell, the trusts fell together.

High levels of debt made them drop even faster.

Volatile

"I feel cheated. We should have been warned," Linda complains.

Aberdeen admits that the St David's investment trust had "high gearing" - stock market jargon for big debts.

Marketing director, Piers Currie claims that the St David's takeover was properly explained.

He points out: "The chairman's letter stated that an investment in new St David's ordinary shares may be regarded as more volatile than an investment in Prolific."

Rescue plan

There are plans to give compensation to investors in another badly performing Aberdeen fund.

Those with money in its Progressive Growth unit trust will receive full details of a rescue plan within the next two weeks.

Nearly 7,000 investors are expected to be guaranteed the return of their original investment, if they hold on to it for another few years.

Responsibility

This trust also invested in split caps.

Despite being promoted under the banner "the one year old who lets you sleep at night", it has fallen sharply.

Aberdeen is also discussing a compensation deal for investors who despaired of Progressive Growth and sold their stake.

Investors in other trusts want to know why only this one is being compensated.

Aberdeen's explanation is that Progressive Growth is a unit trust and as such, the direct responsibility of Aberdeen Asset Managers.

The split caps managed by Aberdeen were all investment trusts, which are companies in their own right.

According to Aberdeen, the responsibility lies with the individual board of directors in each of these cases.

The Financial Services Authority is continuing its investigation into the whole split caps affair.