# AIB Euro Return Fund....any good?



## niallck (18 Apr 2011)

Have a lump sum to invest, about 40k, and AIB sent me a brochure detailing their Euro Return Fund Issue 12, and Portfolio Combination Offer.I already have funds locked into various fixed term accounts with AIB, B of I and Ulster Bank.Just wondering if its worth the risk to put money into these trackers.Naturally the blurb sounds great; 4.63%, 100% capital security etc etc. Its still AIB though, with all what comes with that banks past performance, and their charge is pretty high, 7% and 10%.Maybe its worth a chance? Otherwise maybe KBC or Rabo bank could be an option.I'm not a big risk taker either!!!


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## bryanod (18 Apr 2011)

Short and Sweet

Not very good. Sure you can get 4.5% from BoI for 2 years without worrying if the market goes up, and you still have AIB/Gov risk etc to deal with, not that I am advocating BoI either, but the rubbishness of some of these deposit style funds really grates.


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## Monksfield (19 Apr 2011)

I have looked closely at AIB Euro Return and am very surprised to see it categorised in the brochure as 'Low to Medium' risk given that it involves providing funding for almost 5 years to AIB.
This morning's Irish Times reports that Moody's has downgraded the Irish banks to below Investment Grade (junk) and the bonds of the State which back-stops the banks are currently one step above junk and yielding 10% .While these rating agencies have certainly been quite fallible in the past they do present an objective assessment of the credit risk. 
I do not know of any low-medium risk investment which will give me my capital back with a yield of 10%.The reason Irish bonds yield 10% is that the markets fear( increasingly expect) default/re-structuring.
At this stage I would have thought the compliance people in AIB would be erring on the side of caution or is this another example of the risk people having their arms twisted by the business people ?

And what has the Financial Regulator to say ?trackers are largely sold as Deposit alternatives and the buyers are usually at the low risk end of the spectrum.

The very same issue attaches to the Aviva Secure product which is being promoted madly at the moment....same period of credit risk to AIB.This product is even more objectionable from a consumer perspective in that charges consume 10% of the amount invested.This is partly because the commission is so high-4.5%......being promoted madly....etc.

We are watching what could be the next misselling scandal before our eyes....FR where are you ???


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## mercman (19 Apr 2011)

Monksfield said:


> We are watching what could be the next misselling scandal before our eyes....FR where are you ???



A large amount of funds sold by the Banks are not what is depicted. The funds refer to certain sectors and equities and investors think that they are investing in these categories. However this is a myth. In many case the investor's funds are not invested at all and the particular equities and sectors are tracked simply to show the relevant performance whether it be positive or negative. 

The Banks choose to use the monies to add to their loan book, to fulfill their general banking requirements. They reckon that lending the monies is more profitable than investments and the return they would achieve is far higher than investing in the equities.

As for security of the investments ? Well if an investor thought that he was invested in foreign equities, they are not. So if the Bank goes bust so does the money. Basically the Investment is used to lend NOT to invest.

This is a true and accurate fact. Investors ain't getting what they thought they were investing in.

These facts were given to me by a retired director of an IRISH BANK.


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## Monksfield (10 May 2011)

Another disadvantage of this product is that it is structured as a unit-linked fund rather than a deposit - that means outside the Deposit Protection Scheme and liable to a 1% levy (is part of the 10% cost loading).


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## davmidge (18 May 2011)

hi , first  post  not sure if its the right section ,anyway here goes . Invested  in AIB Accumulator Fund  17 months ago  up until 2016 ,now  need  to   access  some of  the investment or all if possible ,can I cash -in   all or  some of my policy  . sorry if its wrong section   cheers


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## maude6868 (22 Jul 2011)

*AIB Euro Return Fund - any good*

I'm in the very same position as you, I'm also very worrie that if things go pear shaped with Irish banks, default etc will our money simply vanish. I too would like to get my hands on it now but reading the literature it seems it's locked in until 2016, at which time there may not be AIB anymore


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## maude6868 (22 Jul 2011)

Also, I need to add, I have never heard a peep since I invested this money, have you had any letters, statements re your investment. I find it suspicious that I get no correspondence.


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## farmerette (23 Jul 2011)

maude6868 said:


> I'm in the very same position as you, I'm also very worrie that if things go pear shaped with Irish banks, default etc will our money simply vanish. I too would like to get my hands on it now but reading the literature it seems it's locked in until 2016, at which time there may not be AIB anymore


 

if the euro was going to collapse , it would have happened by now , its becoming more clear each day that germany will not allow the thier decade long project to die , threats of banks going bust , people loosing thier savings etc has presented germany with a huge opportunity to centralise control of europe , france are on board too of course and sarkozys speech the other night was laced with talk of closer integration and federalisation , were irish banks to go bust , germany would be on the hook for billions , i would have no fears of your savings disapearing , i would be terrified of your independance being completley lost however , euroland is on the way


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