Hansard Capital Investment Bond Review

What is the Hansard Capital Investment Bond?

Hansard offer a wide range of savings and investment solutions to meet the needs and demands of their global customer. They also offer market leading online systems which were launched in 1999, affording both the customer and the advisor access to key information in relation to clients policies held with them.

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. Hansard Capital Investment Bond is a whole of life, life assurance contract issued by Hansard.

The Hansard Capital Investment Bond is an offshore, is a capital redemption contract with a 99-year fixed term. It continues until the end of the term unless cashed in earlier. At the end of the term the bond has a guaranteed value of at least twice the premium amount you have paid (less any withdrawals or surrenders).

The Capital Investment Bond is issued in the form of a single policy or several separate polices known as a “cluster of polices”. The initial charging term is fixed (based upon the commission and charging structure agreed) at the time of the policy activation and this cannot be varied or waived; therefore, early encashment of the policy results in a “surrender charge” or “early withdrawal charge”.

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.

What are the Investment Options?

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

What currency can I invest in?

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.

What is the charging structure?

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 adviser.

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).

What if I want to access my money?

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.