With-Profits Bond

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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 ?
I remember that they used to love With Profits Bonds as the money was secure, and they tended to perform very well.
Jeremy Gates looks at a group of people looking for somewhere new to invest their savings An army of small investors will soon be looking for a new home to store their billions of pounds of savings, as they grab the chance to withdraw money from poorly-performing With Profits bonds without paying a penalty.
The the the Endowments and With Profits bonds both include an element of life cover, which might have to be arranged elsewhere if a policy is scrapped.
CHARTWELL have produced a With- Profits Bond Guide which examines each of the life companies' with profits Bonds and their future prospects.
A DESPITE lower bonus rates, with profits bonds have still given people a positive return on their money over the last year compared to those from the stock market.
Free details on one of the leading With Profits Bonds paying up to 10.
It also claims returns from its pensions, endowments and With Profits Bonds, over periods up to 25 years, comfortably outperform the "average building society account" in every case.
April's issue of Investment Life and Pensions magazine, charts the progress of a pounds 25,000 lump sum invested in various with profits bonds over the past five years.
QI AM increasingly worried about the various With Profits Bonds I hold.
For a free guide to with profits bonds, ring 0800 544 644.
I am sending you details of one of the With Profits Bonds currently available, and other readers can obtain a copy by ringing 0121 321 3322.
These new businesses are basically managers, taking a percentage to keep with profits bonds and policies ticking over until they mature.