AXA Distribution bonds

Dooooooooooooooonut

baby_boomer wrote: »

Corporate Bonds used to be low risk but losses of 40% are now common.

Commercial property used to be a couter-cyclical lowish risk investment. But no longer.

These changes may have affected your fund's value and risk liability.

Dunstonh has advocated both types of fund as lowish risk on these boards, so it's hardly fair to blame Axa's original assessment - although it is up to them to keep investors up to date.

Nonsense. They've always been just as risky but almost no one noticed. Any other conclusion is meaningless in fact... How can an asset class be more risky? About the closest you could get is more likely to fail in one year but by the time you'll realise this it will probably be reflected in the market price... This is where I again point out IFAs can be worse than useless if you're not very clear on what they can and can't do, and one of the things they can't do is predict the future or offer meaningful investment advice beyond the banal.

dunstonh

this bond which was sold to us as 'low risk' now appears to be medium risk

The bond has no risk. Its just a tax wrapper, a container, that holds your investments. Its the investments that carry the risk. The investment options available range from cash, fixed interest funds, property funds and equity funds.

Would be grateful to receive an explanation please the OP's concerns now seem justified, although not adventurous as he was told the risk has obviously changed.

It hasnt changed in risk. AXA have released new versions of the distribution fund rather than having just one. That is all. Its in the same risk profile.