Intrinsic queries demise of with-profits funds

With-profits funds - once seen as a bedrock of retirement savings for many people - have come in for criticism in recent years over poor performance, falling bonuses, opaque charging structures and the practice of 'smoothing'. Last month, Standard Life lowered bonus rates for 600,000 of its with-profits investors in its Heritage fund, despite increased returns of 7.9%. Speaking at the Defaqto DFM conference on Tuesday, Intrinsic investment director Frank Potaczek said that, though the demise of with-profits seemed inevitable, the funds' approach was not designed to deliberately confus...