Standard Life has cut the price of its Sterling Pension fund by almost 5% today after a fall in the underlying fund value.
The reduction in the product's unit price is likely to hit the pension fund values of thousands of investors.
Standard Life has today written to customers and their advisers to explain the reduction.
The firm blamed turbulent market conditions in recent months for the substantial fall in the value of underlying investments, which are picked for their relative safety compared to other assets.
Investment values are expected to recover with time, but exceptional market volatility has led to the short-term reduction in unit prices, Standard Life says.
"Despite the current difficult market conditions, we continue to believe that the fund is a good investment choice for many customers," explains a spokesman.
"Overall, the assets held within the Fund are considered to be of high quality and, based on current expectations, represent sound investments."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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