Pensioner wins payout over Standard Life sterling fund

A pensioner who lost out when Standard Life’s Pension Sterling fund plummeted in value has successfully taken the firm to court.

John Petrie, a retired businessman, has been awarded compensation, lost interest and court fees after the so-called ‘cash fund' investment fell in value, according to the Daily Mail.

Early this year, the Pension Sterling fund, which was partially invested in risky mortgage-backed assets, saw its value suddenly fall by 5%.

Standard Life had agreed to pay our compensation to those affected, costing the firm around £100m, but it did not compensate investors who had been affected by an earlier reduction in the funds value.

In November 2008, the fund fell by 0.5%, which was enough to prompt Petrie to withdraw his cash from the fund. As such, he was not eligible for compensation worth thousands of pounds.

Judge Hickman said Standard Life's marketing literature had been misleading, as it suggested the entire fund was invested in cash.