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Notification of merger of Harmony Portfolios funds

23 Jun 2025

  • S260 Harmony Portfolios Asian Balanced / Z41 Harmony Portfolios Asian Balanced*
    • (“Affected Mirror Fund 1”)*
  • S262 Harmony Portfolios Europe Growth / Z43 Harmony Portfolios Europe Growth*
    • (Affected Mirror Fund 2”)*

We have received notification from the Board of Directors of Momentum Global Funds (“Momentum”) that two of its Harmony Portfolio funds, which are the underlying funds of the Affected Mirror Funds, will be closed by way of merger (the “Underlying Fund Mergers”), effective 31 July 2025 (the “Underlying Fund Mergers Effective Date”). 

The receiving funds Momentum has selected for each of the Underlying Fund Mergers are underlying funds of existing mirror funds in the FPIL fund range, and consequently we will be accepting the Underlying Fund Mergers and switching unit holdings into the corresponding mirror funds from 22 July 2025 (the “Effective Date”). 

Background to the merger impacting Affected Mirror Fund 1

Momentum will be merging its Harmony Portfolios Asian Balanced Fund (“Merging Underlying Fund 1”), which is the underlying fund of Affected Mirror Fund 1, into its Harmony Portfolios Asian Growth Fund (“Receiving Underlying Fund 1”). 

The assets under management of Merging Underlying Fund 1 have been steadily reducing over the last two years and are likely to reach a level that no longer permits an economically reasonable management in the near future. Momentum believe that the fund is not expected to attract significant inflows in the future while its Asian Growth Fund has better future growth prospects, and therefore the merger would be in the best interests of shareholders.

Background to the merger impacting Affected Mirror Fund 2

Momentum has also advised that it will be merging its Harmony Portfolios Europe Growth Fund (“Merging Underlying Fund 2”), which is the underlying fund of Affected Mirror Fund 2, into its Harmony Portfolios Global Growth Fund (“Receiving Underlying Fund 2”). 

The assets under management of Merging Underlying Fund 2 have been steadily reducing over the last two years and are likely to reach a level that no longer permits an economically reasonable management in the near future. The underlying investments of Merging Underlying Fund 2 have a bias to investments in Europe and Momentum do not expect the fund to attract significant inflows, as its research indicates that many investors would prefer a more global asset allocation. Momentum has therefore selected Harmony Portfolios Global Growth Fund as the receiving fund, which has a global allocation with a bias to the United States of America, in line with global exposures.

The action FPIL will be taking

As part of the Underlying Fund Mergers, Momentum is implementing a period of trading suspension, on both Merging Underlying Funds 1-2 and Receiving Underlying Funds 1-2, from 24 July 2025 to 31 July 2025 (the “Underlying Funds Suspension Period”). 

Accordingly, we have decided to switch holdings out and then close the Affected Mirror Funds as of the Effective Date, just ahead of the Underlying Funds Suspension Period. 

We will switch existing holding(s) in the Affected Mirror Funds, and where applicable will redirect future regular premium payments, into the Default Receiving Mirror Funds as follows:

RegionAffected Mirror Fund 1 Default Receiving Mirror Fund 1 
Rest of World (including UAE)S260 Harmony Portfolios Asian BalancedS261 Harmony Portfolios Asian Growth
Hong Kong Offshore*Z41 Harmony Portfolios Asian BalancedZ42 Harmony Portfolios Asian Growth
RegionAffected Mirror Fund 2Default Receiving Mirror Fund 2
Rest of World (including UAE)S262 Harmony Portfolios Europe Growth#S235 Harmony Portfolios Global Growth (USD)
Hong Kong Offshore*Z43 Harmony Portfolios Europe Growth #Z47 Harmony Portfolios Global Growth (USD)

#Please note that Affected Mirror Fund 2 is priced in Euro, while the Default Receiving Mirror Fund 2 is priced in US Dollar.

With immediate effect, only continuing regular premium payments will be permitted into the Affected Mirror Funds. No new single or regular premium payments will be permitted into the Affected Mirror Funds, whether from new or existing investors.

Any premium allocation which would usually be applied to one or more of the Affected Mirror Funds will be automatically redirected to the corresponding Default Receiving Mirror Fund with effect 16 July 2025 (the “Redirection Date”).

All holdings in the Affected Mirror Funds will be switched into the corresponding Default Receiving Mirror Funds from the Effective Date. In line with the Underlying Funds Suspension Period, trading in the Default Receiving Mirror Funds will resume from 1 August 2025.

Whilst appropriate due diligence has been carried out on the Default Receiving Mirror Funds, we do not accept any liability for the future performance of these, or any other FPIL mirror fund. 

Please refer to the Appendix in the sample client communications opposite for comparative information between the Affected Mirror Funds and the Default Receiving Mirror Funds for each region.

These changes will happen automatically within affected policies/contracts and policyholders do not need to take any action if they agree with the choice of Default Receiving Mirror Funds that we have selected. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.

Policyholders can choose to switch their current holding in the Affected Mirror Funds, and/or redirect premiums if applicable, into different mirror funds in the relevant FPIL range for their region. This can be done at any time, however, in order to override the switch and premium redirection to the Default Receiving Mirror Funds, we require alternative instructions by the following cut off dates: 

  • Redirection deadline: 3pm UK time on 15 July 2025.
  • Switching instruction deadline: 3pm UK time on 18 July 2025

We have contacted impacted policyholders and their financial advisers to notify them of the changes; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post

Should you have any questions regarding this notification, please contact the Investment Marketing Team.

*Fund applicable to Hong Kong designated policyholders.