Zombie Funds


Investment funds lying dormant, with a relatively low amount of assets and often high charges are frequently dubbed “zombie funds”.

An investment research and ratings agency, Morningstar, found that out of 15,339 investment funds that invest in mainstream asset classes and have a five year track record, 8,044 have assets worth less than €100 million each, and 3,751 of those had cash flows of less than €10 million per year qualifying them as zombie funds. The total assets of these zombie funds was €80 billion.

Analysis in the report shows that investors who put money into zombie funds are often being disadvantaged as a result of high charges and poor investment performance. Regular investments reviews, typically annually, are therefore essential to ensure your funds are able to work as hard for you as possible.

If you would like a comprehensive review of your existing investments to check how your investments are performing, determine whether the investments are appropriate for you, your needs and objectives, and whether your fund manager is providing good value for the charges, please do contact the office to arrange a mutually convenient appointment with one of our highly qualified advisers.

The value of stockmarket investments and any income from them may fall as well as rise and investors may not get back the amount originally invested. Yield figures may vary and are not guaranteed. It is advisable to hold these investments for a minimum of five to ten years, over which periods stockmarket returns have shown themselves to be historically superior and broadly predictable through both good and bad times. Past performance should not be seen as an indication of future performance.