Today's word: ZOMBIE
Theme for this fortnight: INSURANCE
It is a closed “with-profits” fund that no longer writes new businesses or policies. E.g. Pension funds. In the very near past pension funds were quite famous, in some cases like government service, the beneficiaries are still in existence. But the amounts repaid to investors by these funds are based on so complicated formulas that they even puzzle financial advisers. The funds are dead but they are still paying the profits, hence called a Zombie Fund.