An increased interest in investment bonds

Investment bonds

Following the market crash in 2002 investors and advisers have been looking for alternatives to with-profits, and unit-linked investment bonds are a flexible and tax-efficient alternative

Over the last couple of years financial advisers and their clients have been looking more closely at the benefits offered by unit-linked investment bonds, the result of which has been a surge of new money into the sector. In fact, recent research by market analyst Datamonitor reveals that the unit-linked investment bond market has driven the whole single premium bond market over the last year, making up 71% of the total single premium life business. From the table it can be seen that 2003 was something of a turning point for the market, and it is perhaps no coincidence that 2003 was also t...