Axa Sun Life is to launch an income option for its existing with-profits bond product, writes David ...
Axa Sun Life is to launch an income option for its existing with-profits bond product, writes David Griffiths.
The option, to be called the With Profits Income Bond, launches this week and will give investors an alternative to the existing structure which offers an annual bonus of 5%.
The new version will offer an annual bonus of 6.25% and a slightly lower payout on maturity. It will allow investors to take a higher level of income during the life of the bond without eating into their capital.
The minimum investment in the new option will remain at £5,000. There is an introductory offer of an extra 1.38% on allocation rates until the end of September.
Axa's move follows Prudential, Legal & General and Norwich Union which have all recently launched similar income options to their with-profits structures. They are expected to become more popular as annual bonuses fall because they will not be able to get the income levels they have in previous years.
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