Hundreds of thousands of policy holders with pensions, insurance and savings products with Axa Sun Life have discovered their cash is stuck in a "zombie" fund, reports suggest.
The firm has closed the doors of its £7bn Sun Life Assurance Society (SLAS) with-profits fund to new investors, according to The Daily Mail. Axa claims the move will not affect policyholders, yet the experience of other savers, with over £110m invested in Zombie funds, suggests savings could be eaten away. Once a fund is closed to new investors, it transforms into a zombie. With no new money coming in, there is little motivation for the company managing the fund to do well, The Daily Mail warns. "Closed funds generally produce worse results than open ones. This announcement is bad...
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