Bank of Ireland has announced its first with-profits bond, in conjunction with Liverpool Victoria, the UK's largest friendly society. The new bond aims to provide steady growth for investors with some in-built guarantees. It is a medium- to long-term investment product. Key features include a guaranteed rate of return of 7.5 per cent of the investment at the end of the first year. The minimum investment is £7,500 (€9,523) and the maximum is £75,000. The with-profits bond invests in a wide range of assets, including UK and overseas stocks and shares, gilts, fixed-interest and index-linked securities, property and cash. The allocation can be broken down approximately as follows: 70 per cent equities, 11 per cent property, 11 per cent bonds and 8 per cent cash. While most of the investments made by the fund will be in UK equities, investment paid in and returns paid out will be in Irish pounds or euros. There is an annual management charge of 1.5 per cent and extra investment allocations are awarded, ranging from 0.25 per cent on £30,000 to 0.75 per cent on £75,000.

An early encashment charge will apply if withdrawals are made during the first five years of the bond, sliding from 5 per cent in the first year to 1 per cent in year five.