A Zombie Fund (a.k.a. Closed Fund) is a with-profits life insurance fund, which is closed to new business. So it is running off its investment portfolio, keeping the capital invested while for the last members to die, but not underwriting new policies.
Some critics have argued that investment performance falls once a fund closes. Zombie Funds can attract negative coverage, as in the case of Resolution plc.
For further information on zombie funds please see here: http://www.investmentcheck.co.uk/zombie.html
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