Standard Life Sterling Fund

wonderman

shaunrc wrote: »

Hi

My suggestion is that we all write to the same person if we wish to complain. I have written to the person who wrote to us as at least he is aware of the position. If John Gill gets a lot of letters hopefully it will make him think. His title after all is Managing Director Customer Services.

Agreed that is a sensible suggestion - write to him with a copy to the FSA.

bob_a_builder

anyone whos good at this sort of thing want to come up with a template letter ?
you know, key points to make and in which order to present them to the best effect

artha

Is the alternative managed cash fund a safer prospect?

My company "Group AVC" information package has just received a fund choice update to the prospectus last issued in Feb 07. The Managed Cash Fund now appears in the hands on/self selection/custom built options but does not appear on the page that cites the Sterling One Fund(Risk (1) +Protection One fund (Bonds Risk 3)) as the options to select for those close to retirement. I cannot understand this. Why isn't the Managed cash fund on this page. Is it that there would be questions about why there are two cash funds? Do they think people are stupid?(perhaps we have been, to take at face value what has been previously published and believed it)
Did any of our learned and professional IFAs, who now seem wise after the event,give any warning?

irondog

artha wrote: »

Is the alternative managed cash fund a safer prospect?

My company "Group AVC" information package has just received a fund choice update to the prospectus last issued in Feb 07. The Managed Cash Fund now appears in the hands on/self selection/custom built options but does not appear on the page that cites the Sterling One Fund(Risk (1) +Protection One fund (Bonds Risk 3)) as the options to select for those close to retirement. I cannot understand this. Why isn't the Managed cash fund on this page. Is it that there would be questions about why there are two cash funds? Do they think people are stupid?(perhaps we have been, to take at face value what has been previously published and believed it)
Did any of our learned and professional IFAs, who now seem wise after the event,give any warning?

The Managed 'cash' fund is NOT a cash fund, its still a money market fund. As the fund will therefore operate according to the ABI MM definition then it could well hold asset backed securities, and change its asset allocation at will...... my understanding is that cash deposit accounts are not available in PPP/SHP's and if this type of vehicle was required then a hybrid or pure sipp would be required.....

irondog

The other point to bear in mind is that if the valuation method used by SL is used by other providers as well, then their funds will be devalued in much the same way....

artha

irondog wrote: »

The Managed 'cash' fund is NOT a cash fund, its still a money market fund. As the fund will therefore operate according to the ABI MM definition then it could well hold asset backed securities, and change its asset allocation at will...... my understanding is that cash deposit accounts are not available in PPP/SHP's and if this type of vehicle was required then a hybrid or pure sipp would be required.....

Sorry to labour this but why is it called a cash fund?(the Sterling Fund that is) Surely if it is not a cash fund then it should be called something else that describes what it is invested in. Are financial institutions exempt from the spirit of the Trades Descriptions act or the regulations relating to ingredients in a food product where you list items in the order of magnitude i'e the major component is listed first the least last. SL said that it was invested not only in bank/ building society deposits but also ...etc. i.e the impression is that the major component is actually pure cash, when it turns out only to be about 13%

wonderman

irondog wrote: »

The Managed 'cash' fund is NOT a cash fund, its still a money market fund. As the fund will therefore operate according to the ABI MM definition then it could well hold asset backed securities, and change its asset allocation at will...... my understanding is that cash deposit accounts are not available in PPP/SHP's and if this type of vehicle was required then a hybrid or pure sipp would be required.....

The mgd cash fund does not hold asset based securities - it is invested in gilts and bonds + cash deposits. I would be happy to invest in this fund as a low risk fund - only issue is the high annual charge. Much better than the sterling fund which imho is a high risk fund dressed up as cash. The manager of the sterling fund should be fired.

wonderman

artha wrote: »

Is the alternative managed cash fund a safer prospect?

My company "Group AVC" information package has just received a fund choice update to the prospectus last issued in Feb 07. The Managed Cash Fund now appears in the hands on/self selection/custom built options but does not appear on the page that cites the Sterling One Fund(Risk (1) +Protection One fund (Bonds Risk 3)) as the options to select for those close to retirement. I cannot understand this. Why isn't the Managed cash fund on this page. Is it that there would be questions about why there are two cash funds? Do they think people are stupid?(perhaps we have been, to take at face value what has been previously published and believed it)
Did any of our learned and professional IFAs, who now seem wise after the event,give any warning?

It should appear on there as well; imho it is the best choice of the three funds right now. The people producing the paperwork dont know what they are doing - they are the stupid ones. BTW Protection one is invested in long term gilts - these have done well recently - BUT need to watch it if govt prints money and inflation makes a come back.

artha

just noticed that SL have another "cash" fund in the Pension One wrapper.."The Pension One Cash Fund" It is now closed to new investors and "is designed for investors who are looking for a temporary home for their money when the short term outlook for equities, bonds and property is uncertain" sounds familiar?
No investment details apart from "100% Money Market". The growth on this fund has been marginally better than the Sterling One fund but essentially the same. What I did notice however is that it has shown steady growth for several years until December, since when it has flatlined. Is this the next SL "cash" fund to dip?

ginebrosa

the 2008 Standard Life guide "This is about your Pension Investment Choices with Standard Life" clearly states under Assetclass "CASH"

"Investing in Cash means putting your money on deposit (for example in a bank account) where it earns interest. This offers more security than equities, property or bonds, but has less potential for growth"

And the Pension Sterling One is only one of 2 funds under Asset Class "CASH"

Even if they can invest in other products than deposits, having only 12% in cash seems ridiculous.

Why has the fund been marked down only recently? All asset-backed securities have lost over the last 1 1/2 years?
And if they have invested in high yield stuff, where were the profits before?

I think it stinks and needs to be investigated. Has anybody written to Standard Life already?