Standard Life to compensate Sterling Fund investors
Standard Life is proposing to reimburse some customers whose savings have lost value because they were invested in the insurer’s Sterling Fund.
The £2.4 billion fund has had 5% of its value wiped out by the credit crisis, or around £1,237 per investor.
The company is acknowledging that some people who put money in the fund believed it to be a cash fund, which is not the case because it also holds asset backed securities.
According to a report in The Guardian, the fund’s biggest investment is in Lanark Master Issuer, which holds £3 billion of Clydesdale and Yorkshire Bank mortgages, including buy-to-let loans.
After being accused of misleading customers, Standard Life has agreed that savers who carried out transactions between 23 December and 13 January and have lost money as a result, should have their losses made up.
Any reimbursements will be based solely on the value of transactions between the key dates.
The Sterling Fund has around 97,000 investors and it is not yet clear how many are affected.
Category: Insurance News, Standard Life News
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