09 February 2009
Following pension scheme member complaints, legal advisers have
been consulted by trustees of funds affected by the drop in value
of Standard Life's Pension Sterling Fund. The £100m, or 5%,
written off from the £2.4bn fund due to investments in asset
backed securities affected around 97,000 investors.
Pan Governance Chief Executive, Steve Delo, said: "The big issue
here is that cash funds have been misunderstood by trustees of
defined contribution pension schemes. No one paid any attention to
cash funds until the credit crunch."
Tom McPhail, Head of Pensions Research at Hargreaves Lansdown,
has advised trustees to demand compensation from their investment
advisers.
