Saturday, January 24, 2009
Off Topic – info for HPC regulars who have switched to cash during market uncertainty
Standard Life’s Pension Sterling Fund has a higher weighting in sub-prime mortgage backed securities than it does cash, it has emerged. Despite being promoted as a home for investors’ money “when the short-term outlook for equities, fixed-interest securities and property is uncertain”, the fund has 13 per cent invested in “non-conforming residential mortgage-backed securities”, while only 12 per cent in cash. The insurer has been bombarded with complaints from both advisers and investors after it performed a shock revaluation, which saw nearly 5 per cent wiped off the value of its Pension Sterling Fund.