With-profits - but the profits aren't great
Article Abstract:
UK insurance companies have offered with-profits bonds which have given returns superior to those of building society accounts, and above the rate of inflation. Bonuses are not withdrawn once they have been allocated. The bonuses cannot be predicted and rates quoted apply to the year when the bond is sold, in most cases. Access to funds is restricted, and returns are not as as as returns from investing in shares. Other options such as personal equity plans and tax exempt special savings accounts can offer more tax advantages.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Guaranteed underperformance
Article Abstract:
Guaranteed equity bonds (Gebs) offer risk free investments since capital is guaranteed. The bonds do not offer income and this affects total returns. Tracker funds would provide better growth in terms of income and capital. BZW is offering bonds that can be traded but investors are paid prevailing prices on the market when they sell. The units can be divided into two, and invlove derivatives. Investors could invest directly in equity markets with lower risks.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic: