Standard Life Money Fund bailout

Image via WikipediaIn the scheme of things it's not huge, and they claim it's not embarassing, but Standard Life has injected cash into its £1.8bn sterling 7 day money fund. In doing so, the FT reports [free version here] that

The restructuring of the £1.8bn fund,which involves it moving to a mark-to-market pricing structure, will trigger a £52m pre-tax loss, or £37m post-tax, in the group’s first-half figures, it said. However, the cash cost would be only £17m.

The restructure has included swapping out some asset backed securities for corporate bonds.

The action is accompanied by a removal of the "guarantee" that it wouldn't "break the buck" i.e. return less capital to investors than they invested, a subject I wrote on here.

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