With-Profits Bond

(redirected from With Profits Bond)

With-Profits Bond

A fixed income investment based on non-fixed income instruments. For example, one may purchase a with-profits bond with a 5% annual return, but the money one invests is placed in stocks, mutual funds and other instruments. The profits made in the "good years" are not disbursed to the investor; rather, they are used to make up for losses in the "bad years." These instruments are designed to allow one to take advantage of market movements without assuming too much risk. With-profits bonds are sponsored by insurance companies.
References in periodicals archive ?
The money came from a With Profits Bond that my parents had.
For tax efficiency, the best way to extract money from a With Profits bond over a period is to take five per cent per year.
Q I have just cashed in a With Profits Bond and received less than my original investment, even though I did not make any withdrawals during the three years I held it.
ON a minimum pounds 5000 Britannic Portfolio with-profits bond, the With Profits Bond Shop (0115 958 7555) will invest 108 per cent of your money on applications before July 31.
One of the most popular areas of investment in recent years has been the With Profits Bond, a low risk investment where most of the funds are held in equities.
For example, an investment of pounds 10,000 in a With Profits Bond in February, 2003, which paid pounds 14,099 in February, 2007, would have a cash-in value today of pounds 15,833.
WE have a with profits bond with Royal & Sun Alliance, though the bond has now been taken over by Resolution Life.
A With Profits bond has the valuable benefit of smoothing out the ups and downs of the stock market over the longer term because of the system of annual bonuses.
Q: My With Profits Bond bonus rate has reduced recently.
Standard Life said sales had been particularly strong in personal pensions, pension annuities and the company's With Profits Bond, launched in April.
1 per cent in September, according to research by the With Profits Bond Shop.
She has a pounds 5,000 Royal Sun Alliance With Profits Bond and pounds 3,000 in a Cheltenham & Gloucester Direct Transfer account.