What is a Zombie Fund?

A "Zombie Fund" is the term used by industry experts and the FSA for with-profit funds that are closed to new investors. Research by well respected actuaries AKG, estimates that more than £160 billion is held in these "Zombie Funds". In some cases, bonuses have been suspended altogether. To make matters worse, many of these funds face hefty penalties if you try to switch your investment to funds which have some prospect of future growth.

Are All Closed Funds Worthless?

Not Necessarily. AKG have produced an 800 page report which does not put all the closed funds in the same category.

What Can Be Done?

With your written authority Park Row will contact each provider on your behalf requesting a wealth of policy information.

Based on the information received from your provider, I, as an Independent Financial Adviser with Park Row, will advise you on the best course of action.

Some of the information obtained from your provider includes: the current fund value, current surrender value, current Market Value Reduction penalty (if one applies), current Terminal Bonus (if one applies), current reversionary bonus, charging structure of the fund, past performance of the fund. Please note that this list is not exhaustive and that past performance is not to be used as an indicator to future performance. Advice can then be provided on whether you should remain in, or leave a with profits fund.

Click here for a list of Zombie Funds

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