Standard Life investors demand compensation after 'cash' fund invests in toxic debt

Nearly 100,000 investors have their pension savings in Standard Life’s £2.4bn Sterling Fund, which was, until September last year, the company’s only cash option for those seeking refuge from volatile stock markets.

Standard Life, one of Britain's largest insurers, said the fund aimed to deliver similar returns to cash, but rather than keep money on deposit almost half of it was invested in asset-backed securities, where returns have been linked to the troubled mortgage markets. It is losses on these “toxic debts” that have caused the fund to fall by 5pc over the past year, giving investors an average loss of £900 each.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA