• Capital Builder grows virtually tax free - offshore
• Full and partial encashments are free of Isle of Man tax
• Additional contributions may be made at any time
• All units are allocated at bid price
• Capital Builder proceeds can be accessed at any time
• A choice of over 25 currencies for both contributions and benefits
• The fund choice may be altered and reviewed at any time
• Supervision and investor protection are assured by the Isle of Man Government Access to over 100 professionally managed investment funds
• Competitive charging structure
• Trust and trustee facilities available
• Enjoy the security of a major international financial institution
• Award-winning Managed Funds available
• Regular withdrawal facility available once £10,000 has been contributed

For the International Investor

The investment world has changed radically in the last decade. The removal of exchange controls and the computerisation of trading has transformed investors' horizons and expectations. The sophisticated investor is no longer restricted to dabbling in a few shares on the largest stock exchanges. Instead, we live in a truly international investment world.

Investment in international markets can prove extremely lucrative. However, to achieve superior performance consistently, investors have to conduct careful research and analysis, company by company, sector by sector and country by country. Few private individuals have the time or resources to commit to such a task -yet they would like to participate in the potential profits.

Hansard International is proud to introduce Capital Builder. Capital Builder provides access to a wide range of professionally managed funds, each with a specified investment objective. All the funds have a risk rating, which indicates the volatility of the likely returns. Clients can invest in a mix of funds with Capital Builder, varying the mix over time to suit their particular circumstances and outlook. As the underlying funds grow with investment success, so does the value of Capital Builder.

Capital Builder reflects Hansard International's ideal - to provide flexible, convenient investment products which are good value to clients. For example, Capital Builder has no high up front charge or bid/offer spread. Clients can decide to make just one contribution, to contribute on a regular basis, or to contribute `as and when'. 

Irrespective of how contributions are made, the capital invested begins to work immediately upon receipt of funds.

Capital Builder contracts may be denominated and contributions made in any one of over 25 currencies, including US Dollars, UK Sterling, Deutschemarks, French,Belgian or Swiss Francs, Japanese Yen, Singaporean Dollars and Euro. There are a number of ways to make contributions, including International Direct Debit, Automatic Bank Transfer and Credit Card.

Where the contract currency differs from that of the contributions or the funds chosen, Hansard International will arrange the currency conversion at the company exchange rates then prevailing. Details of these rates are available on request. Clients should note that gains or losses can arise as a result of exchange rate fluctuations.

A Comprehensive Choice of Funds

The Hansard International fund range consists of over 100 investment fund links chosen to cover the majority of the world's investment markets. The range includes single country, regional and industry fiends, Managed Funds, deposit funds and fixed interest fiends.

Capital Builder contributions can be split among the available fund links. Furthermore, the investment strategy can be changed either by switching existing holdings from one set of finds to another or by directing future contributions to a new choice of funds.

The performance of a Capital Builder contract is determined by the performance of the investments underlying the fund links chosen. This performance is measured by the unit price; unit prices can fall as well as rise.

Hansard International also currently offers a range of mirror funds in association with external fund managers.Details of these funds can be obtained by downloading the current fund performance bulletin on the fund performance page.


Award-winning Funds & Service

Hansard has won a number of awards for both its funds and its service.

The fund range includes managed funds advised by Hansard Fund Managers Limited, the award-winning fund management team based in the City of London. Hansard Fund Managers Limited is part of the Quilter Group, a long established, leading investment management business based in London. The Hansard Group has won over 70 Standard & Poors awards in recent years as well as eight first places from Lipper, the Reuters owned financial analysis company, and many of these fund performance awards relate to funds managed by Hansard Fund Managers Limited.

The Investment Opportunity

The opportunity to establish Capital Builder is open to anyone who can commit to investing at least £10,000 (or currency equivalent) over a three-year period as a lump sum, as fixed amounts at regular intervals or on an ad-hoc basis.How and when you make your contributions therefore is entirely up to the client.

Having decided to establish a Capital Builder contract, the fund links should be chosen. The available fund links include the complete range of Hansard International funds, together with a number of `mirror funds', which invest in unit trusts managed by leading investment houses and merchant banks.

The investment strategy for Capital Builder can be reviewed at any time. Transfers between funds are generally free of charge once £10,000 has been invested and all transfers are effected on a bid-to-bid basis. If transferring from funds denominated in one currency to funds denominated in another, Hansard will arrange the currency conversion at the prevailing company exchange rates.

Units of the fund links chosen will be allocated to Capital Builder for 100% of all contributions received. The units are allocated at bid price, which means no bid/offer spread, unlike many similar contracts.

The actual value of Capital Builder will depend upon the performance of the fund linked to the contract. Fund performance is measured by progress of the unit price; unit prices can of course fall as well as rise.

Tax and Capital Builder

Hansard International Limited is exempt from tax on the Isle of Man. Client funds thus accumulate free of Isle of Man income, corporation and capital gains tax, and should enjoy faster growth than similar taxed investments. In addition, all benefits are paid out without deduction of Isle of Man tax.

Some of the available funds invest in countries that levy witholding tax on investment income. This tax is deducted at source and cannot be reclaimed.

Investing For Income

Capital Builder can be used to provide an automatic regular encashment (to provide an income) in the currency of your choice; alternatively, ad-hoc partial encashments can be made. Both regular and ad-hoc encashments are made without deduction of tax by the Isle of Man authorities. The amount to be withdrawn can be fixed or can be a percentage of the contributions received.

Income withdrawals are provided by encashing sufficient units from Capital Builder to provide the sum required. All such encashments are subject to the standard encashment rules and charges described in the Technical Guide.

There is a small payment fee for each encashment This fee is waived for certain withdrawals depending on the contributions received and the frequency of withdrawals in accordance with the table below.

For those who know that they will require an income during the first five years of investment, Income Builder, a variant of Capital Builder, allowing penalty-free withdrawal of up to 10% per year of the contributions received, is available. Please contact us if you would like details on the Income Builder.

Taking the Profit

Encashments from Capital Builder can be made at any time: Units are encashed at bid price and once the related contribution has been invested for more than seven years are not subject to an additional discontinuance charge.

There is an additional discontinuance charge levied when units are encashed in respect of contributions invested for less than seven years. This charge is 7% of the amount encashed when the related contribution was made in the previous twelve months, reducing by 1% for each of the following six years of investment.

The discontinuance charge is waived on encashment of units relating to contributions made between five and seven years previously, provided the amount encashed is less than 10% of the sum of those contributions.

Full details of all the charges, including those on encashment, are given in the Technical Guide.

CSM Ltd publish the fund performance figures monthly on our web site.If you would like to receive notification of when the new figures are published please subscribe at the Hansard Fund Performance Download Page. 

Each quarter CSM Ltd produce a Personalised Investment Review (PIR) showing the number of units allocated to individual Capital Builder contracts. By referring to the PIR, the progress of the contract can be followed.

 

Description

Capital Builder, available from Hansard International Limited, is a unit-linked investment contract for single, regular or ad-hoc contributions.

Eligibility

Clients must be at least 18 years of age and not resident in the Isle of Man at the time of application. Capital Builder can be written on a single or joint-life second-death basis. Applications cannot currently be accepted from clients living in France, the United States of America or the United Kingdom.

Minimum Contributions

The minimum contribution is £300 per month or £3,500 per year. Alternatively ad-hoc contributions may be made subject to a minimum total contribution of £10,000 being made within three years of commencement of the contract. Clients may make contributions in most freely convertible currencies, with the minimum contribution level being set at the date the contract is put into force by converting the Sterling limit to the chosen contract currency.

Currencies

Capital Builder may be denominated in any one of over 25 major currencies. Clients may change the currency denomination of the contract at any time, at the prevailing company exchange rate.

Unit Allocation

Accumulator units are allocated at bid price for 100% of all contributions received. The units allocated are directly related to specific contributions.

Funds

Units may be allocated from your choice of funds selected from the full Hansard International range.

Switching

Once £10,000 has been contributed to Capital Builder, switches will normally be free. A switching charge may be levied by Hansard International in exceptional circumstances. Future contributions can be re-directed to a different set of funds at any time without charge.

Withdrawals

Withdrawals may be made on an ad-hoc basis or automatically to provide an income, subject to normal encashment rules and charges, and provided contributions totalling at least £10,000 have been received. There is a small fee per withdrawal, which is waived depending on the amount of the total contributions paid and the frequency of withdrawal payment, in accordance with the table below:


Encashment Value

Withdrawals can be made at any time, for the value of encashed units less the balance of the year's management charge (on the amount realised) subject to the notes below. The value is calculated using the unit bid prices determined immediately after receipt of a valid encashment request. The minimum encashment at any time is £100.

Units relating to contributions which have been invested for less than seven years are subject to an additional charge on encashment. This charge is 7% of the amount encashed if the related contribution has been invested for less than twelve months, reducing by 1% for each year of investment of the related contribution.

This additional charge is waived when units are encashed which relate to contributions which have been invested for between five and seven years, provided that the amount encashed does not exceed 10% per year of the sum of the current value of those contributions.

On full encashment, the balance of the year's service fee and any outstanding establishment charges will be levied.

If the minimum contribution of £10,000 in total is not received within three years of the commencement of the contract, or if the contract is fully encashed within that period and the minimum contribution has not been received, a special discontinuance fee is levied by cancellation of units.

Where a partial surrender takes place within that period and before the minimum contribution has been received, if the value of the units remaining allocated to the contract after the partial surrender will be less than the special discontinuance fee, then that fee will be deducted from the partial surrender amount.

Sum Assured

The benefit payable on the death of the appropriate life assured is 101% of the value of units allocated to the Capital Builder contract at the bid prices calculated immediately after the date of receipt of valid notification of death. Where the client (or, in the case of a joint-life contract, the younger client) was aged 75 or over on the date the contract was put in force, the sum assured is an amount equal to the Encashment Value, calculated using the previously mentioned unit bid prices.

Charges

There is an establishment charge of 0.6% of each contribution levied quarterly in advance for four quarters only. An annual service fee is deducted monthly, currently at the rate of £22.50 per month. There is a management charge, deducted continuously through the year, currently 1% per year of the value of the units allocated to the contract. (Please note that Mirror fund managers levy their own charges in addition, which may vary at any time without notice. Hansard do however obtain institutional discounts which directly benefit the client - many Mirror funds can as a result be accessed with a 95% and in some cases 100% discount.All Management charges are taken into account in the unit price.

Who Will Advise Me Before I Invest

Hansard International products are available only through intermediaries such as Paul Rowe CertPFS on the basis that the intermediary is, in all cases, acting on the client's behalf.

Written illustrations of indicated benefits are available from Paul Rowe CertPFS in order to demonstrate the possible returns from this contract on specified assumptions. 

If you would like to receive a personalised illustration simply contact us.


How Do I Establish A Capital Builder Contract?

Having decided that Capital Builder is a suitable and appropriate contract for your requirements, you should;

1.Decide the amount you wish to contribute, remembering that if you do not contribute the agreed minimum amount within the first three years, your benefits may be significantly reduced

2.Choose your fund links and decide how your contributions are to be split among the fund links chosen - Paul Rowe CertPFS can of course assist with this process.

3.Choose the currency in which your contract should be denominated

4.Complete the application form, and send it to Paul Rowe CertPFS, together with your preferred method of contribution payment. If issuing cheques these should be made payable direct to Hansard International Limited.

If you would like to receive a personalised illustration simply contact us.

Hansard International is required by law to ensure that it does not receive finds connected with any illegal activity. Certain enquiries may therefore be necessary to ascertain the source of finds and the identity of clients.

Can I Exchange My Current Investments'

If you hold shares or other assets that can readily be sold on an exchange, Hansard International can usually arrange to sell them on your behalf at the rates available to institutional investors. Once sold, any proceeds received in excess of your stated investment can be returned to you, or added to your Capital Builder contract.

If you are considering surrendering existing life insurance / pension policies to effect this contract, you should discuss the implications - and in particular, any financial penalties - with Paul Rowe CertPFS before arranging the surrender.

Capital Builder - Important Notes

The value of this contract depends on the performance of the funds that are chosen. Fund performance is measured by the progress of the unit price; unit prices can fall as well as rise. Unit price fluctuation may result in losses, especially in the short term, and gains or losses may arise as a result of exchange rate fluctuations.

The information provided relative to the Hansard Capital Builder is based on Hansard International's current understanding of legislation. No liability can be accepted for changes in the law, practice or tax regulations of any country.

The Technical Guide is a summary of specific parts of the Terms and Conditions for the product described, and this information can therefore be relied on. Hansard International cannot, however, accept responsibility for or be bound by any contradictory or supplementary information provided by any third party about this product.

Hansard products are available only through professional intermediaries and on the basis that the intermediary is, in all respects, acting on behalf of the client.

If a client becomes resident in the Isle of Man or the United States of America while the Hansard policy is in force, this will affect the status of the policy.

If the client becomes resident in the Isle of Man, Hansard International is required to terminate the policy by way of a deemed surrender on the day it becomes aware of such residence.

If the client becomes resident in the United States of America, Hansard International may not be able to accept further contributions or instructions to vary the fund choice until after the client subsequently ceases to be a resident of the United States of America.

The relevant Terms and Conditions set out the full details of the contract between the client and Hansard International Limited. Copies of the Terms and Conditions are available on request.

Monetary charges are expressed in £ Sterling and increase each year, normally in July, to reflect inflation in accordance with the contract Terms and Conditions.

This contract is covered by the terms of the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991. Hansard International reserves the right to adjust the returns from investments to cater for any levy or charge made on it under these regulations of any similar legislation.

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