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 ?
Our UK team was able to complete sales of PS104m of bulk annuity transactions above our hurdle rate (no bulk annuity transactions in the first half of 2013) and to significantly increase sales of with-profits bonds by 25% as retail annuity sales decreased by 43%.
Intermediary partners are the primary route to market for a range of products and services that includes individual annuities, individual and corporate pensions, with-profits bonds, onshore and offshore bonds, savings and investments, healthcare and protection products.
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.
Sales of its with-profits bonds almost trebled to pounds 74m.
Sales of its with-profits bonds almost trebled to pounds 74m, reflecting demand for "diversified" investments.
A decade ago With-Profits Bonds appeared to offer a genuinely attractive avenue into the potentially flourishing returns of the stock market.
They hold either with-profits bonds, endowments or pensions.
Q I'VE surrendered my with-profits bonds, but want to keep a rainy-day fund in a high-interest deposit account.
With-profits bonds are a poor option for most people.
A STOCKMARKET volatility means that with-profits bonds no longer provide the high level of returns they used to.
Investors will be keen to hear what impact falling sales of ISAs and with-profits bonds have had on insurance giant Legal & General when it reports first-half figures on Thursday.