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Review_ Offshore Investment Bonds

Offshore Investment Bonds

Hansard Capital Investment Bond

An independent review of the Hansard Capital Investment Bond by our team of experts

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Summary

The Hansard Capital Investment Bond is a whole-of-life, capital-redemption offshore bond from Hansard International, an Isle of Man life office operating since 1987 and part of the London-listed Hansard Global plc, regulated by the Isle of Man Financial Services Authority and the Labuan FSA. It is no longer open to new business and has been replaced by Hansard's Universal Personal Portfolio.

Written on a 99-year capital-redemption basis, with no lives assured, it does not end on death and can be passed down through families for estate planning if held in trust, and is available on single or joint ownership in five currencies (US dollar, sterling, Hong Kong dollar, Japanese yen and euro). It was designed for a lump sum from a minimum of USD 20,000 over the first three years, with single contributions from USD 2,000 and access to over 170 funds plus external assets at additional cost.

Its charges are linked to the commission taken by the selling adviser, and early surrender carries significant discontinuance penalties.

Pros

  • Strong, listed parent company (Hansard Global plc)

  • Capital-redemption structure can suit estate planning if held in trust

  • Multi-currency, with access to 170+ funds

Cons

  • Risk of hidden commission

  • No longer open to new business (out of date)

  • Commonly mis-used

  • Extremely expensive once commission is included

  • Heavy early-surrender penalties (up to about 8%); partial withdrawals can raise real costs

  • Not recommended for QROPS/SIPP; limited low-cost fund access

Our verdict

The Hansard Capital Investment Bond is an out-of-date offshore bond, and the clearest evidence of that is that Hansard no longer sells it; it has been closed to new business and replaced by the Universal Personal Portfolio. If you hold one, this review is about what to do next rather than whether to buy.

Two things stand out. First, the charges. This is a commission-driven structure, and with commission built in it is an extremely expensive product, with the cost well concealed inside the plan. Surrender penalties are heavy in the early years: units held for under a year carry a 7% discontinuance charge, tapering to nil only after seven years, and it is not unusual to lose as much as 8% of the plan value by exiting early, with outstanding annual, service and establishment charges deducted on top. Even partial withdrawals can quietly raise the real cost.

Second, the structure is inflexible, the low-cost fund access that a modern platform takes for granted is missing, and AES does not recommend it for QROPS or SIPP investing, where it simply layers further fees onto a pension. Hansard's administration is capable, but it has not been known for serving clients well through the intermediaries who sold these plans, which is exactly where the concealed charges and commission tend to do their damage.

None of this means you should surrender on reflex; sometimes the remaining penalty makes staying put the lesser cost for now. It means the bond should be examined properly. If you hold a Hansard Capital Investment Bond worth around GBP 500,000 or more, a no-obligation Second Opinion will show exactly what you are paying, what it would cost to leave, and whether a cleaner, cheaper arrangement would leave you better off, even after any exit charge.

FAQs

  • What will it cost me to surrender or withdraw from a Hansard Capital Investment Bond?

    • Units held for less than 12 months carry a 7% discontinuance charge, reducing by 1% for each complete year and falling to nil after seven years (with a waiver on units held five to seven years for withdrawals up to 10% a year). It is not unusual to lose as much as 8% of the plan value by surrendering early, and on full surrender any outstanding annual management, service and establishment charges are deducted as well. There is also a per-withdrawal charge (currently GBP 29, sometimes waived) and a minimum withdrawal of USD 200.

  • The bond is closed to new business, so should I keep it?

    • It is closed to new business and has been replaced by Hansard’s Universal Personal Portfolio, but that does not automatically mean you should exit. Whether to stay or move depends on the charges you are paying, how much of any discontinuance penalty remains, and whether a cleaner, cheaper arrangement would leave you better off even after exit costs. A Second Opinion can model that before you decide.