Standard Life Sterling Fund £100m U-Turn
Standard Life has made a dramatic ‘u-turn’ decision this morning announced that it will reinstate policyholders unit prices in its ‘sterling’ fund following a decision to adjust the fund price down by 4.8% on January 14, thus giving an over night loss to investors who thought they were in a safe, cash fund.
97,000 investors were affected and amid a growing revolt by both policyholders and advisers, indeed action groups were looking at legal proceedings given that much of their literature may not have been clear and may have been misleading.
In any event, Standard Life had decided to restore the value of the fund by using £100m of its own profits and reserves to cover the adjustments made to allow for the fact that the Sterling fund had in fact lent money in the form of mortgage debt, sometimes termed as ‘toxic loans’ i.e. ones that are going bad.
We welcome the move.
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