Distribution-type funds preferred to with-profits

Poor returns and negative publicity are persuading investors to look for alternatives

With-profits bonds continue to be shunned as distribution-type products increase in popularity. Figures from Chartwell over the past 12 months show investment into with-profits bonds via the adviser channel has fallen by 19%, while investment into distribution funds has risen 29%. Over two years, investment into with-profits bonds via Chartwell has declined by 77%, while there has been a 35% increase in investment into distribution products. Patrick Connolly, an adviser at Chartwell, said: 'It is not a total one-for-one replacement however. Some people who are avoiding with-prof...