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 ?
Tens of billions are locked in With Profits bonds, which are supposedly super safe, because they are invested in shares, bonds, fixed interest investments, property and pensions funds.
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.
Free details on one of the leading With Profits Bonds paying up to 10.25 per cent in the first year are available by ringing 0800 544644.
G.B.,LlandudnoGiven the poor performance of with profits bonds, you a reabsolutely right to keep an eye on yours.
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.
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.
Most financial advisors reckon with profits bonds are well past their sell-by date, but several providers still claim they are a good bet.
Q I'VE read about with profits bonds offering 7.5 per cent and that they are low risk.
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.
QI AM increasingly worried about the various With Profits Bonds I hold.
For a free guide to with profits bonds, ring 0800 544 644.