Hansard International, according to its website, is a 30-year company with $1 billion assets under management based out of the isle of man. today I want to give Hansard International Review.
Hansard International has two main types of products, its a saving plan capital builder 2, that as far as saving plans go offshore it is reasonable compared to what is in the offshore market. Similar to what have mentioned before unless you have a certain reason to use this, you do have cheaper options available to you.
I don’t like the fact that it has lower charges for longer periods and lower amounts. When most of these saving plans don’t work out. I was speaking to a person earlier today that asked for help as they were stuck in a 25-year plan and wanted to get out (I didn’t sign him up for the plan).
I was the bearer of bad news telling him as he was only 2 years in you don’t have many options but to lose most of what you put in if not everything he had invested. Yes, the plans aren’t the best but you can also blame the people “advising” on these plans.
As most people shouldn’t be in one and if so should be looking for 10-year terms. I have a few clients, that opt to go in them as they have a platform portfolio, also with this I want a monthly plan to emulate a pension, similar to what I would have back in the U.K., and just put a small amount of their salary.
I have looked at using options for this if they are opposed to platforms or just want a monthly plan and they have the capital to afford it and they understand the charges and the risks.
The portfolio bonds that Hansard offers are very much like ITA Access portfolio, which I have written about in other blogs, with the main difference is the location in the Isle of Man and the fact that Hansard has a more flexible 1Z bond.
The Z5 bond is a 5 year bond with a charging structure of 1.7% plus its admin charges 413 GBP for 5 years and a dealing cost of 25 GBP per trade and fund costs. A reasonable option at best for those looking for a bond, again it has high costs but if you do have a longer time period say 10-20 years, it might not be so bad. Reason for this is that after the 5 years you do just pay the admin charge of 413 GBP plus fund and dealing costs.
However, I would ask if you are getting advised this ask why are you getting proposed this as it lacks flexibility for 5 years and at least for 5 years its high cost. Again, if you are looking for a bond option would go for Z1 as I will go into detail next.
Hansard also have Z8, which seems a bit ridiculous at 1.2% for 8 years. If you go through the charges it is more expensive over a longer period of time. I can’t honestly, see much reason to going in these.
Over the Z1. I will state, that this is cheaper than over bonds with full commission such as RL360, Zurich Vista than have 10 year periods.
What you do have is the Hansard Z1, now this I like as an offshore bond. It is for high net worths as you do have a 400 GBP a year fee and dealing cost. But, for example, if you have 1 Million pounds (or currency equivalent) it works out at 0.04%. If you have a higher net worth, you have the 400 GBP fee plus fund cost, which work out cheaper the more you put in.
Unlike other bonds that have an establishment charge and surrender charge, it only has a 1% set-up fee and an advisor cost that can be up to 5% initial.
For those ultra high net worths this might not be a bad option to private banking as even the options with the banks looking at 0.2% this can be cheaper if used right for high net worths.
Conclusion
If you are looking at an offshore bond for tax reasons and have over $250,000 the Hansard Z1 might be an option that I would investigate and I would personally stay clear of Z5, Z8, as they cost more.
In regards to saving plan and again looking for a beneficiary option, its capital builder is feasible. However, I would make sure it is right for you and look to stay for shorter periods.
If you have any questions about investing in Hansard or other options that might be appropriate for you, please email me at info@investmentsforexpats.com
