Standard Life Sterling Fund

Lawlesstce · 8 February 2009 at 12:13PM

My pension fund transfered my AVC fund to the Sterling One Fund against my wishes in February 2008. this was after Nationwide closed it's deposit acconts for AVC's. I read the prospectus of the fund and I saw it as too risky a home for my fund which was nearing maturity. I am currently battling with the Trustees of the fund, who are continuing to insist that they have made the right decision despite recent developements.

What is even more annoying is that the Pensions Advisory Service support the Trustees position. They take the view that as long as the Trustees acted on advice, irrespective of the accuracy of the advice, that is the end of their responsibilties.

Workandpay · 8 February 2009 at 8:29PM

I've set up a blog at https://www.standardlifepensionvictims.org where you can comment and register. This will allow a group of us to consider concerted action of some kind if we need to. Support and suggestions appreciated.

wonderman · 8 February 2009 at 11:50PM

Kayster wrote: »

Would it be best to transfer out of this fund into SL new cash fund or leave the money where it is?

I would move out. It has had a dismal perfromance and still has a large percentage invested in difficult to value assets. It could therefore be subject to further adjustments down. It seems a long way off for any potential upside to these sort of assets. It seems more risky than the cautious equity/bond fund run by SL - and at least there is a chance of making some money from stock market gains in the medium term.

Daytona · 10 February 2009 at 4:05AM

Lawlesstce wrote: »

I am currently battling with the Trustees of the fund, who are continuing to insist that they have made the right decision despite recent developements.

The Trustees can hide behind their advisor.

The point that may save you is the fact that the mortgage backed securities (MBS) were inaccurately valued to such an extent that the fund contravened FSA rules. I'd make this the focus of your complaint. See my earlier posts. The advisor and the Trustees would have known that they were investing in a fund with at least 40% exposure to MBS, which they might have had to hold to maturity to realise fair value - I'd call that a high risk approach.

Escalate as soon as possible.

cogito · 11 February 2009 at 8:27AM

Standard Life have caved in. Everyone will get their money back according to the BBC.

Old_Slaphead · 11 February 2009 at 10:20AM

Thanks cognito

Story :
http://news.bbc.co.uk/1/hi/business/7882967.stm

http://uk.biz.yahoo.com/11022009/325/standard-life-compensates-97-000-fund-customers.html

As a fundholder - great news

As a shareholder - boooooo!

Overall it must be the right thing to do.

shaunrc · 11 February 2009 at 1:03PM

Congratulations to everyone who complained! I am sure this helped.

I think we should also claim for our time spent complaining. After all if they had done the decent thing and paid up initially it would not have been necessary. Companies which cave in after resisting should surely have some form of punishment for wasting our time........

Apologies to shareholders and any effect on them. It is a current problem that shareholders have not enough control over the boards of companies who behave as if the company is their own personal fiefdom.

EdInvestor · 11 February 2009 at 2:56PM

shaunrc wrote: »

Apologies to shareholders and any effect on them. It is a current problem that shareholders have not enough control over the boards of companies who behave as if the company is their own personal fiefdom.

HBoS comes to mind.Today's falling on sword at the FSA by former CEO Sir James Crosby (who sacked the HBOS risk manager who whistleblew inside the bank!) is another welcome move.

Let us hope we are witnessing a turning point. [I know pigs don't fly.]

sabretoothtigger · 11 February 2009 at 3:08PM

Its a consumer product so 'buyer beware' wouldnt cut it really, hopefully a lesson learned

EdGasket · 11 February 2009 at 3:11PM

The BBC news says that compensation will be by injecting 100M back into the sterling fund. However after the 5% drop in one day, I panicked and have moved most of my pension out of the Sterling Fund. Therefore a simple injection of money back into the fund would not compensate me. Does anyone know how I will be compensated? Also does it mean anyone joining the Sterling Fund now might get a 5% uplift even though they hadn't lost anything? Confused !! At least they have admitted their mistake so eventually I should get something though it might take a few letters !