Insurance company Standard Life are to spend £100m compensating 97,000 customers that invested in a safe fund that lost money by investing in riskier than advertised markets.

Standard Life will give compensation to all customers in its Pension Sterling Fund, which saw the value of its assets drop by almost 5% in one day last week.

"The Standard Life product did not do what it said on the can," said Peter Hargreaves of company Hargreaves Lansdowne, which campaigned for compensation.