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REVIEW SUMMARY

Hansard International Universal Personal Portfolio

Hansard International has been providing financial products and services to international clients since 1987 from their base on the Isle of Man. 

Hansard International forms part of Hansard Global plc, which has been listed on the London Stock Exchange since 2006. 

They claim to have USD 1 billion of assets under administration and provide servicing for tens of thousands of international clients.

Hansard International Limited is regulated and supervised by both the Isle of Man Financial Services Authority (IoM FSA) and the Labuan FSA (LFSA).

Overview
FAQ
Customer Reviews
Expert Verdict

Hansard's Universal Personal Portfolio is a whole-of-life unit-linked insurance contract that allows for the investment of lump-sum contributions.

The aim of the contract is to benefit from the potential medium to long-term increase of the value of your savings by investing the contributions you make into a wide range of assets provided and administered by Hansard International, or by external investment managers, or into a discretionary managed account.

Features of the Universal Personal Portfolio:

  • Universal Personal Portfolio is aimed at high-net-worth, Malaysia resident clients, aged 18 years or older who have a lump-sum to invest over the medium to long-term to achieve a financial goal.
  • The contract is available in GBP, USD or EUR, and this will determine the valuation currency, the default cash account for charging and the minimum contribution levels.
  • Universal Personal Portfolio may be held by one or two contract owners. Unless otherwise instructed, they will act upon instructions from either contract holder.
  • The death benefit will become payable when the life assured dies (or for joint lives assured, either the first death for joint-life first-death or the second if it is joint-life last-survivor) and at this point the contract will end.
  • The standard death benefit sum assured is 101% of the contract value, but this will be reduced to 101% of the surrender value if the life assured is more than 75 years old (or for a joint-life, first-death contract if either of the lives assured is more than 75 years old or for a joint-life last-survivor contract if both of the lives assured are more than 75 years old) on the commencement date.
  • As a whole-of-life contract, Universal Personal Portfolio does not have a fixed term – it will continue for as long as the lives assured are alive, or until the contract is surrendered.

You may choose from one of three different charging options, depending on how you wish your contract charges to be deducted:

Charging option

Description
Z1 Contract set-up charges deducted on day 1; no withdrawal penalties
Z5 Contract set-up charges deducted quarterly over 5 years; charges applied on all withdrawals during the 5 year charging period
Z8 Contract set-up charges deducted quarterly over 8 years; charges applied on all withdrawals during the 8 year charging period


The annual management charge (AMC) taken by Hansard International, differs for each charging options and for external and internal units. 

External assets:

Charging option

Annual management charge %
Z1 Nil
Z5 1.7% per year for 5 years
Z8 1.2% per year for 8 years


Hansard unit funds:

Charging option

Annual management charge %

Deducted from the Contract

Deducted from the Fund
Z1 Nil 1% per year
Z5 0.7% per year for 5 years 1% per year
Z8 0.2% per year for 8 years 1% per year

 

Note that where the Contribution Remaining Allocated is greater than the contract value linked to that contribution, then an AMC (Annual Management Charge) will apply to the difference between the two, at the rate that applies to external assets as detailed above.

*You can find the full list of charges and costs associated with Universal Personal Portfolio in the documents section of this review.

The longer the period of time that the charges are taken over, the lower the yearly charge amount is but the higher the total cost.


Investment assets under the Universal Personal Portfolio:

  • The asset categories offered include unit trusts, deposits, equities, fixed interest securities and Hansard International Limited Unit Funds (Hansard unit funds).
  • This is subject to the prevailing asset acceptability criteria. Assets must be marketable and liquid for confirmation that specific external assets (assets other than Hansard unit funds) can be administered within the contract.
  • There may be different minimum investment amounts for each asset, and these will be detailed in the relevant documentation for the asset.
  • Your contract will hold units that represent your share of the relevant assets, but all investments are held in the name of Hansard International and they are the legal owners of the underlying assets.

Contributions to Hansard's Universal Personal Portfolio:

The minimum initial contribution of the plan depends on the charging option selected. This can be summarised below:

Charging option

Minimum initial contribution (GBP)
Z1 50,000
Z5 25,000
Z8 25,000

 

All cash contributions are paid into a cash account that forms part of your contract. Contract charges and withdrawals are deducted from this cash account, and all deals are placed from or into cash, depending on whether it is a purchase or sale.

Hansard says that it is your responsibility to ensure that there is a sufficient level of cash in place throughout the term of the contract to cover the regular contract charges and other associated transaction costs.

Additionally, you may make additional lump-sum contributions at any time, subject to them being GBP 5,000 or above.

NOTE:

  • It is important to note that if you take withdrawals or if you surrender your contract during a charging period, then this could result in you getting back
    less than any illustrated fund value and possibly less than the total amount you have contributed.
  • We would highly recommend reading the 'expert verdict' section of this review before making a decision.

 

 

The Pros

> Offers some tax protection in certain jurisdictions
> Different charging structures available

The Cons

> Initial contribution can be high depending on the charging option selected
> Additional lump sum minimums of £5,000 or more
> Does not provide full access to the lowest-cost funds and passive trackers
> A full encashment on particular charging structures could result in penalties being applied through surrender charges
Can the contract be surrendered at any time?

The contract can be surrendered at any time for the value of assets allocated to it, but may be subject to a surrender charge.

  • For option Z1, the surrender charge is equal to the service charge accrued for the elapsed part of the quarter in which the surrender is made.

  • For options Z5 and Z8, the surrender charge comprises the discontinuance charge plus the annual management charge and the service charge accrued for the elapsed part of the quarter in which the surrender is made.
What are my cancellation rights?

After getting the Hansard Universal Personal Portfolio, if you change your mind once your new contract starts, there is a cancellation period during which time you may cancel the contract without penalty.

When they issue the documents for your new contract, they will send you details of how to cancel your contract, and you will have 30 calendar days from receiving these documents to request this.

You may also cancel before you receive your contract documents by contacting Hansard or your independent financial planner.

If you do decide to cancel, they will give you your money back, unless the value of the assets you have invested in has fallen, in which case you will get back the value available at that time which may not be the full amount you paid in.

No contract charges or penalties will be deducted, however, any administration costs associated with each asset, such as dealing charges or entry and exit fees, will still apply.

These cancellation rights also apply to any additional contributions that you may make, effective from the date each contribution is allocated.

Can I transfer the title of assets I already own under the Universal Personal Portfolio?

You may transfer the title of assets which you already hold to them, so that they may be held within your Contract without incurring potential exit penalties or entry costs, or risking market movements during a sale and repurchase.

This is often referred to as an ‘in specie transfer’.

To be transferred, the assets must meet their acceptability criteria and an asset transfer charge will apply.

What is the service charge of the Universal Personal Portfolio?

The service charge is GBP 412 per year.

This charge is deducted from the cash account held in the contract currency at the end of each calendar quarter (GBP 103 per quarter).

What are the dealing charges applicable?

A dealing charge will be applied for each asset sale or purchase, and will be deducted from the cash account in the contract currency.

The dealing charge amount will vary depending on the asset as follows:

  • For each Hansard unit fund transaction - GBP 12.50.
  • For any other dealing transaction, for each transaction - GBP 25.
In what currencies are the charges applied?

Monetary charges are expressed and applied in GBP.

Charges will be converted to the currency of the contract at the date the charge is applied.

Charges and minimum/maximum values are reviewed on a yearly basis – normally during July – to reflect changes in inflation, and may be increased without notice.

Have you used Hansard's Universal Personal Portfolio before?

Join the conversation - be the first to comment.

Please send your review and comments to marketing@aesinternational.com to help people make an informed decision.

Expert assessment of Hansard International's Universal Personal Portfolio

Hansard does not have a strong reputation for dealing with licensed intermediaries.

If you are advised via one of these distributors, it is likely that the outcome you receive will be substantially different to the one you expect because of the well concealed, high product charges used to fund this adviser's commission.

This product is a replacement for Hansard's Capital Investment Bond and is fairly inflexible. There are more cost effective, flexible products with a wider range of better investment options available for senior international professionals like yourself.

If you already have a Universal Personal Portfolio from Hansard, and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

Hansard International - Universal Personal Portfolio Brochure

Hansard International - Universal Personal Portfolio Key Information Document

Hansard International - Universal Personal Portfolio Z1 Terms and Conditions

Hansard International - Universal Personal Portfolio Z5 Terms and Conditions

Hansard International - Universal Personal Portfolio Z8 Terms and Conditions

Hansard International - Universal Personal Portfolio Z1 Charges

Hansard International - Universal Personal Portfolio Z5 Charges

Hansard International - Universal Personal Portfolio Z8 Charges

Hansard International - Universal Personal Portfolio Stockbroker Charges

Hansard International - Universal Personal Portfolio Application Form

Hansard International - Privacy Policy

Hansard International - Universal Personal Portfolio Notice of Cancellation

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