Sterling fund furore leads to call for toxic asset ban

The outcry follows investor fury over the 5% decline in Standard Life's £2.4bn Sterling fund last year, which had about half of its portfolio in asset-backed securities, including "toxic" mortgage debt. Threadneedle has also come under intense scrutiny, after its £239 UK Money Securities vehicle declined 11.4% over the three months to 26 January, according to Morningstar. It attributes the sharp fall to depressed values in floating rate notes. Many money market funds can invest a large percentage of their portfolios in asset-backed securities and floating rate notes, seen as 'near cas...