Who Are:
Hansard?
Hansard Worldwide Limited (Hansard Worldwide) is a part of the FTSE-listed Hansard Global plc group, benefiting from a robust relationship with Hansard International Limited. This affiliation involves a reinsurance arrangement, with Hansard Worldwide located in the Bahamas and Hansard International Limited at the group's Isle of Man headquarters. The reinsurance setup ensures that holders of Hansard Worldwide contracts receive the advantages of the group's expertise in insurance, administration, and technology.
Hansard Worldwide operates under the regulation of the Insurance Commission of the Bahamas (ICB), while Hansard International is regulated and supervised by the Isle of Man Financial Services Authority (IoM FSA) for both its insurance and reinsurance activities.
Since its establishment in 1987, Hansard International has been a provider of innovative financial products and services for three decades. Over this period, the company has accumulated assets under administration exceeding £1 billion and has served over 40,000 clients globally.
***Some of these products may have commissions built directly into them. If you've been advised to consider a Hansard investment policy reach out to us to explore if we can establish the policy at a lower cost.
Kevin's Review:
Hansard is one of the largest providers of international investment accounts in the market and one of the very few to be listed on an international stock exchange (LSE). This public listing provides an element of transparency and accountability to shareholders that many investors appreciate.
Hansard have a great offering for lump sum investors (Global Select) and regular savers (Vantage Platinum Worldwide) as well as a hybrid product (Capital Builder Worldwide) for investors looking for more flexibility.
These are long-term wealth planning vehicles as much as they are investment accounts and should be taken out only when appropriate to do so and with the proper time horizon in-mind. If you are considering a Hansard policy it is worth speaking with a qualified financial adviser who can ensure it is fit for purpose.
Investment Bond:
Capital Investment Bond
Hansard provides an extensive range of savings and investment solutions catering to the diverse needs of their global customers. They have pioneered market-leading online systems since 1999, offering both clients and advisors access to essential information regarding held policies.
For individuals planning their financial future, the Hansard Capital Investment Bond emerges as a comprehensive whole-of-life life assurance contract issued by Hansard. Operating offshore, it takes the form of a capital redemption contract with a fixed 99-year term. The bond persists until the term concludes, guaranteeing a value at least double the premium amount paid (adjusted for any withdrawals or surrenders) at the end of the term.
Issued either as a single policy or a cluster of policies, the Capital Investment Bond features a fixed initial charging term established at policy activation. This term, based on the agreed commission and charging structure, cannot be altered or waived. Consequently, early encashment incurs a "surrender charge" or "early withdrawal charge."
When contemplating a Hansard Capital Investment Bond, understanding the local taxation position is crucial. Prospective benefits must be weighed against limitations in flexibility, access, and often undisclosed charges. While the bond may have supposed tax advantages, it tends to be a more expensive option compared to a pure platform custodian plan. Offsetting ongoing charges with a commission rebate is vital, as the bond lacks a full range of discounted funds, direct equities, or trackers for investment.
The Hansard Capital Investment Bond provides diverse investment options, featuring over 170 international funds from leading fund houses. These funds grant access to equities, bonds, and collectives, with an additional charge for investments outside the plan.
Investors can choose to denominate their Hansard Capital Investment Bond in US dollars, British pounds, Hong Kong dollars, Japanese yen, or Euros, with benefits paid in the selected plan currency.
The Capital Investment Bond offers flexibility in accessing funds, allowing for partial or full encashment at any time. However, full encashment in the early years incurs penalties through surrender charges. Consequently, policies in the first 5 to 8-10 years may face relatively high surrender charges. Additional details on how encashment is treated can be found in the relevant brochure.
The charging structure varies based on the specific plan chosen, often tied to the commission or earnings received by the third-party adviser. For the Hansard Capital Investment Bond, the establishment charge is a percentage of each Investment Amount paid. It is deducted in arrears on each of the first four Charge Dates following payment of each Investment Amount. The establishment charges are based on the originally received Investment Amounts, regardless of any previous partial surrenders or regular withdrawal payments. Specifically, it is 0.5% of each Investment Amount on each of the first four Charge Dates, totaling 2% per annum for one year.
Regular Savings Plan:
Vantage Platinum II
Hansard's Vantage Platinum II is an international regular savings plan designed to cater to the financial needs of their global customers. Launched in 1999, Hansard provides a comprehensive online system for both customers and advisors to access essential information related to client policies.
Key features of Vantage Platinum II:
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Eligibility: Applicants must be between 18 and 65 years of age at the commencement date. The plan is available on a single-life or joint-lives basis, either first-death or second-death. Residents of the United States of America are ineligible to apply, and applications from European Union member states are generally not accepted.
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Death Benefit: In the event of the life assured's death before the agreed maturity date, the standard sum assured is 101% of the value of the initial and accumulator units.
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Maturity: The contract matures at the end of the agreed term, which should be set at the outset. If fully surrendered before the term's conclusion, the contract matures. The term must be at least 10 years and no more than 25 years. Vantage Platinum II is not suitable for contract holders aged over 75 at maturity.
Investment Choice: Units are allocated to approximately 180 unit funds from Hansard International’s Series 2 unit fund range. These funds include mirror funds from around 30 Asset Managers, covering 20 different asset/sector types. Initially, the contract can be linked to a maximum of 20 unit funds, with no maximum thereafter.
Mirror Funds: Mirror funds are a type of mutual fund, typically managed by a life insurance company. They allow investors to access another company’s mutual fund through insurance policies. Mirror funds may involve additional fees and charges.
Multi-Currency Option: The plan is available in most major currencies, allowing flexibility for clients to change the currency denomination of the contract at any time, based on the prevailing exchange rate.
Minimum Contribution: Policyholders are allowed to make contributions in most freely convertible currencies. The minimum contribution level is determined at the contract's inception by converting the GBP limit to the chosen contract currency. After two years of contributions, future contributions can be reduced or waived, subject to meeting specific conditions.
Increases to contributions can be made at any time, directing them to a new contract. No service charge is applied to the new contract while the base contract is in force. The term of the new contract must be a complete number of years.
Charges: Various fees and charges apply to the Hansard Vantage plan:
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Annual Management Charge: 1.5% per year for accumulator and initial units, reflected in the quoted unit price.
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Additional Charge for Initial Units: 5.5% per year, reflected in the quoted unit price.
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Service Charge: GBP 7.25 per month (GBP 12.25 per month for paid-up contracts).
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Switching Charge: Per unit fund (currently free online, GBP 45 per manual unit fund switch).
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In the early contract years, charges are carried forward without interest until there are sufficient accumulator units to cover them.
Discounts or Bonuses: Hansard provides bonuses through the Hansard Vantage Platinum II to offset costs. These bonuses are determined by the chosen savings term at the contract's outset, including loyalty bonuses and initial bonuses. Initial bonuses are forfeited if the plan is not maintained for at least five years.
Early Closure, Stop Contributions, or Withdrawals: On early withdrawal or full surrender after the first two years of contributions, the appropriate number of accumulator units is surrendered at their full unit value using applicable unit bid prices. This means that most, if not all, of the first two years' premiums are lost upon surrender.
Following a withdrawal, the contract must have an accumulator unit value of not less than GBP 1,000, and withdrawals are subject to a charge. Initial units have no monetary value except at the end of the chosen term or prior to death. The minimum withdrawal at any time is GBP 100.