Bonds

Fixed Interest Investments

A Corporate Bond is effectively the loan to a company. The company pays you a fixed rate of interest and promises to pay back the loan on a specified date. The risk profile for bonds places it in between cash and shares. The company has to have enough cash to repay the capital and cover the debt. The income is fixed unlike Dividends which can be cut as profits decline the company has an obligation to Bondholders to service the debt and there fore continue to pay the higher fixed rate of interest.

When you invest in a Corporate Bond you lock into a fixed rate of income although the capital value will fluctuate until the bond is redeemed. Bonds are traded on the open market so prices will rise and fall due to market movements in relation to factors such as earnings, defaults, changes in interest rates or inflation. .

Bonds, Preference Shares and Permanent Interest Bearing Shares (PIBS) offer an alternative source of income for the Private Investor faced with dwindling yields from their Equity Portfolios. Interest Bearing Securities due to their diversity and risk profile offer the Investor the opportunity to invest across a wide range of Blue Chip Companies.

Index Asset Management will construct and manage income portfolios tailored to the specific risk profile of each of client.

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Index Asset Management GmbH is the Authorised Intermediary of Index GmbH, authorised and regulated by the BaFin, No. 5500655. Regulated by the Financial Services Authority (FSA) for the conduct of UK Investment Business, www.fsa.gov.uk/register and the Irish Financial Services Regulatory Authority (IFSRA) for Irish Investment Business, www.ifsra.ie Index Asset Management GmbH is registered in Germany with the Amtsgericht Frankfurt, HRB No. 82546 and with registered office at Reuterweg 49, D60323, Frankfurt, Germany. Due to the fact that we are authorized in Germany, the regulatory system applying including any compensation scheme may be different from that of the UK, Ireland and other Europeans countries.