A Zombie Fund is a with-profits life insurance

Life insurance

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...

 fund, which is closed to new business. So it is running off its investment portfolio, keeping the capital invested while waiting 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

Resolution plc

Resolution plc was a UK insurance company headquartered in the City of London. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index but was acquired by the Pearl Group in May 2008.-Early history:...

.