Hansard Capital Investment Bond Review
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Fund Access 2.5 / 5
Charges 2.5 / 5
Accessibility 2.0 / 5
- Widely available and sold, with strong company rating
- Offers some tax protection in certain jurisdictions
- With commission rebated it could be considered for a minimum of 5 years investment and no withdrawals required
- It offers time apportionment for those returning to UK
- No flexibility of full withdrawal or full access in the early years without penalty
- Many countries do not recognise any tax concessions
- With commission this is an extremely expensive option, and even part withdrawals can increase real costs
- Does not provide full access to lowest cost funds and passive trackers
- WARNING: Costs are largely dictated by the charging structure chosen by an adviser. Some advisers recommend a 1% regime and then, after the client has signed, change the charging structure to a more expensive regime to earn more commission
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Based in the Isle of Man, founded in 1987, part of Hansard Global. Listed on London Stock Exchange since 2006.
Over 1 billion USD under management with over 40,000 clients with a worldwide following. However, being listed in London does not make it regulated in the UK and USA, which it is not and the products are not approved for sale in these territories.
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|Policy Currency: The Hansard Capital Investment Bond may be denominated in US dollar, GB pound, Hong Kong dollar, Japanese yen or Euro. Benefits will be paid in the plan currency.|
|Why choose the Hansard Capital Investment Bond: Leading Fund Houses offer a wide choice of investment funds. Over 170 international funds available with access to outside equities, bonds and collectives at an additional charge|
|Hansard Capital Investment Bond promotion: What does Hansard write about their own Hansard Capital Investment Bond? Whatever you plan for your future, you will need financial resources available at the right time to be able to achieve the things you want. Vision is a regular premium investment solution that is designed to meet your changing needs throughout your life.So, if you are interested in building a brighter future for you and your family, look no further than than the Hansard Capital Investment Bond.|
|Eligibility: Hansard Capital Investment Bond is a whole of life, life assurance contract issued by Hansard. It is available to most international investors outside of main regulated territories such as the UK, the U.S.A. and Australia.|
|Minimums: Beginning with a minimum of USD 20,000 in the first three years, without the need to commit to a defined regular contribution. It is written on a capital redemption basis and is available on a single or joint ownership basis.|
|Charges: This will depend on the type of plan you take out from Hansard as they offer different charging structures largely linked to the amount of commission or earnings being taken by the third party salesman or adviser.|
Establishment charge example: Hansard Capital Investment Bond establishment charge is a percentage of each Investment Amount paid. It is deducted in arrears on each of the first 4 Charge Dates following payment of each Investment Amount. Establishment charges will always be based on the Investment Amounts originally received irrespective of any partial surrenders or regular withdrawal payments previously taken. 0.5% of each Investment Amount on each of the first 4 Charge Dates, following payment of each Investment Amount (total of 2% per annum for one year).
Are charges explicit: This will depend on the type of plan you take out from Hansard as they offer different charging structures largely linked to the amount of commission or earnings being taken by the third party salesman or adviser.
|Surrender of the Hansard Capital Investment Bond: Availability of partial or full encashment at any time. Further details on how it is treated is available in the relevant brochure. A full encashment results in penalties being applied in the early years through surrender charges. In effect this means that on polices the first 5, or more typically 8 – 10, years may have quite high surrender charges imposed. It is important to be aware that the Hansard Capital Investment Bond is a long term plan, if you decided to cancel the plan early you could lose a considerable proportion of the money you have invested; we have heard that as much as 8% of the value of the plan value can be lost by surrendering the Hansard Capital Investment Bond early.|
Quick Summary from TailorMade
Previously a big player in the markets, Hansard has withdrawn from many and is keen to follow regulation where possible. We think Hansard are set up to operate in an ethical way.
When considering a Hansard Capital Investment Bond then ensure you fully understand the local taxation position and weigh any benefits against its lack of flexibility, access and charges which are often not explained. However, the Hansard Capital Investment Bond is an expensive option compared with a pure platform custodian plan and supposed tax benefits can be outweighed by charges. It is vital that a commission rebate is taken to offset high ongoing charges. It does not offer a full range of discounted funds, direct equities or trackers to invest in.
As these types of plans go, the Hansard Capital Investment Bond is similar to many in the offshore market place. In the 1990s this may have been a top option but in 2016 it lacks the transparency of the latest plans available from territories such as the UK, the USA and parts of Europe; ultimately, the Hansard Capital Investment Bond is an expensive option when compared with a pure platform plan. The standard Hansard funds have high ongoing fees when directly compared to platform or direct offerings from fund houses via the UK or the USA. The Hansard Capital Investment Bond can have high charges on early access.
Pensions (QROPS and SIPP) – If the Hansard Capital Investment Bond is used within a QROPS or SIPP then there will be additional set up and ongoing fees for the life of the policy. EME does not recommend this product for QROPS or SIPP investing.
NOTE: The Hansard Capital Investment Bond has a successful network of distributing agents throughout the world excluding the main regulated territories. Not all distributing agents have regulation or financial qualifications and may not be aware of the other saving plan options available.
The majority of offshore advisers are recommending products from the Ireland (Dublin) or Isle of Man companies. Unitised investments from other countries held within bonds are NOT protected by the Isle of Man or Ireland protection schemes which they are often advertised as being 99% protected – they are not.
There is also an option for the adviser not to charge the client commission, but instead charge a fee. If this option were chosen, it may be of considerable benefit to the performance of the overall investment, as the charges often have a lower impact on the growth of the portfolio. Ask your adviser for further details, as it is not always offered.
WARNING: Costs and information is correct as of July 2016. Please refer to a brochure from the company for current up to date information and any changes on costs or information. You should not buy based purely on information contained within this article and EME do not accept liability for purchases. If you have any doubts then please speak with your financial adviser or a representative of the company for further advice.
If the provider improves or amends its terms then EME would like to hear from them to amend the review page accordingly, and providers are encouraged to comment on errors or omissions to ensure that readers have the latest and correct information.
You can view the details of the Hansard Captial Investment Bond and other plans here at an independent website.
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