The thing about useful stuff is: Standard Life Money Fund bailout

Standard Life Money Fund bailout Friday, May 02, 2008

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.