Investment bond will offer investors lower volatility

Axa Isle of Man is to launch a defensive bond product designed for cautious investors.

An offshore unit-linked single premium bond, the Defensive Bond will use the Liberty Ermitage Asset Selection Fund, a fund of hedge funds, which aims to provide investors with returns of two to three times cash with low volatility.

The Defensive Bond features a minimum investment of £25,000 and it can be set up on a capital redemption or life assurance basis, written under various types of trust and denominated