Axa Group has announced cuts to the terminal bonus (the extra one that is paid at maturity or death) on its range of Axa Sun Life and Sun Life with profits funds blaming a poor recovery in the markets over the last 18 months or so.
Our view
Given that markets have been fairly static for some time now, this is a sensible and unsurprising move. Why should any investor receive additional bonuses when those returns have not been achieved?