Endowment policies for long-term investment
Our Endowment offering, The Hollard Private Wealth Portfolio, helps you save towards your long-term goals. It supports disciplined investing but gives you unlimited flexibility to change your investment particulars. If you have a marginal tax rate of at least 30% and five or more years to invest, this could be the savings solution for you.
The Private Wealth Portfolio has been structured into five policies to give you some liquidity during the investment term.
Click here to view a list of funds available for Private Wealth Portfolio.
Features and Benefits of our Private Wealth Portfolio
|Features and Benefits||Product Details|
|Tax Implications||The value of the investment account is subject to taxation according to the "Four Funds" tax approach that applies to South African long-term insurers. Policy proceeds are paid out tax-free to the original policyholder.|
|Access to Capital||
You can surrender your policy in full or in part (subject to legislation) with no surrender charges. (Only one surrender per policy is permitted.)
|Other Product Features||
What will it cost?
|Product Details||Product Charges|
|Annual Product Charge||0.50%|
|Capital Gains Tax||5%|
|Dividend Withholding Tax||15%|
|Advisor Initial Commission||Maximum of 3% (excluding VAT)|
|Annual Advice Fee||
Maximum of 1% (excluding VAT)
|Underlying Fund Fees||
Charged separately (see Fund List)
|Surrender Charges||Not Applicable|
Private Wealth Portfolio FAQs
Find out everything you need to know about the Private Wealth Portfolio.
- Can I switch out of one underlying fund into another within a sub-policy?
- Yes, your portfolio is flexible. You can choose to switch funds at any point during the investment term.
- Is there a surrender charge?
- There are currently no surrender charges levied by Hollard Investments against the Private Wealth Portfolio. However, we do have the right to apply a surrender charge to cover basic administration procedures in future.
- What is the minimum investment for the Private Wealth Portfolio?
- The minimum investment is R500,000.
- Do the underlying funds have their own sub-minimum investment amounts?
- Yes, they start at R100,000 and go up to R2 million.
- Can I make additional contributions?
- Yes. The minimum additional contribution amount will be specified by your investment manager in the investment portfolio guidelines, but may not be less than R100,000. All additional contributions are subject to current legislation.
- What happens if the life assured passes away?
- Your policy will pay a benefit equal to the policy value, if you're both the policyholder and the nominated life assured. If there is more than one life assured on the policy, the policy will continue to run until the death of the last life assured or until the executor of your estate chooses to surrender or encash the investment.
- Are loans permitted against the policy?
- Hollard Investments doesn't permit a loan to be taken on the policy.
- What are the tax implications of this investment?
- The Private Wealth Portfolio has been specifically designed as a tax-efficient investment vehicle for South African residents. While we are unable to give individual tax advice, based on the current legislation in South Africa, it’s our interpretation that the following tax treatment is applicable: The value of the investment account is subject to taxation according to the ”Four Funds” tax approach that applies to South African long-term insurers. The policy proceeds are paid out tax-free to the original policyholder.
- When are policy valuations issued?
- We issue valuations monthly, 30-days in arrears. Ad hoc valuations are available on request.
- Can the policy be used as security?
- Yes, security and outright cessions are permitted.
- Does the 30 day cooling-off period apply?
- Due to the nature of this policy, the 30-day cooling-off period does not apply.
- Do I need a Financial Advisor to invest in this product?
- Yes. Hollard Investments does not accept investments into this product without a Financial Advisor being appointed.
Select and complete the form of your choice
- Select the relevant form from the list below.
- If you are completing an Investment Application form, please appoint a Financial Advisor. Applications for this investment will not be processed without a Financial Advisor being appointed.
- Print and complete the form.
- Attached all required documentation, including FICA documentation (for new investment applications).
- E-mail or fax the completed form to email@example.com or +27 11 351 3816.
- Tel: 0860 202 202
- Email: firstname.lastname@example.org
- Fax: +27 11 351 3816
- For compliments and complaints, please fill in the form.