Market conditions influencing with-profits bonds

06 November 2007
Changing market conditions may have had a positive effect on the with-profits bonds market, it has been claimed.

A survey conducted by Fidelity FundsNetwork found that 87 per cent of advisers believe that the performance of the market has not "deteriorated" over the course of the last year.

However, of those who claimed there had been an improvement, 68 per cent attributed this trend to changing conditions within the market.

Rob Fisher, head of sales and marketing at the firm, said: "While markets over the last few years have helped to deliver good returns on a range of investments, more recent volatile conditions are likely to have had an altogether more negative effect."

Although it can be relatively "easy" to see how market conditions affect mutual funds, it is less "straightforward" for with-profits bonds, he added.

In related news, Barclays Stockbrokers recently claimed that two-thirds of investors look to take advantage of market volatility by purchasing inexpensive stocks.

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