With-profit bonds are as relevant today as they have ever been and are a viable investment opportuni...
With-profit bonds are as relevant today as they have ever been and are a viable investment opportunity in today's volatile markets, is the opinion among intermediaries according to a survey conducted for Prudential.
Half of the IFAs interviewed said they had sold a with-profit bond product in the last two weeks while another third of intermediaries said they had sold one in the last three months.
In all, 82% of advisors believe that with-profits are relevant today, with 41% saying they are more important today than ever.
However, 18% of those questioned said the with-profits product is less relevant to the needs of today's investors.
Three-quarters of IFAs said the bonds should be part of most balanced investment portfolios.
IFAs are more likely to select bonds over other investment products either because of declining interest rates ( said 91%), market volatility (61%), an alternative retirement option (59%) and increased consumer wealth (48%).
Strategy marketing manager Campbell Boyd said: "It is clear that with-profit bonds remain an important part of the investment landscape helping to achieve a proper balance of risk and reward in most individual portfolios."
Although more than two-thirds of advisers questioned (69%) believe that criticism of with profits bonds in the media over the past six months has not been justified, they suggested that more transparent contracts would do most to improve their popularity in the future.
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