Hollard Linked Endowment

The Hollard Linked Endowment (Previously called Private Wealth Portfolio) supports disciplined investing with added flexibility.

Overview

Endowment policies for long-term investment

Our Endowment offering, The Hollard Linked Endowment, helps you save towards your long-term goals. It supports disciplined investing but gives you unlimited flexibility to change your investment particulars. If you would like to invest in a tax efficient investment solution and have five or more years to invest, this could be the savings solution for you.

You can structure you Hollard Linked Endowment across multiple policies to give you additional liquidity during the 5 year restricted period.

Investment Portfolio list

Click here to view a list of investment portfolios available for the Hollard Linked Endowment.

Additional Information

For a summarised overview of the Hollard Linked Endowment click here.

For more detailed information, click here

Hollard Investments Online

Hollard Investments Online is our secure online service portal. It allows you to access your Hollard Investments information in a safe and secure environment. Click here to find out how to register.

Features & Benefits

Features and Benefits of the Hollard Linked Endowment

Features and Benefits Product Details
Minimum Investment R100,000 per policy
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 policyholder.
Death Benefits
  • Death benefits are paid on the death of the last life assured as specified for the policy. 
  • Death benefit proceeds will be paid directly to the Beneficiaries as specified by the Policyholder and will not be paid to the estate of the deceased.
  • If no beneficiaries are nominated, any benefit will be paid to the deceased estate of the Policyholder.
  • The policy is not subject to  executors' fees if it is not paid to the estate, but will attract estate duty
Access to Capital

During the first five years of the policy you may take one full or partial withdrawal (with no surrender charges), the value of which is limited by legislation.

After five years all restrictions on the policy fall away, and you may withdraw all or a portion of the value of the policy at any time, with no limit on the number of withdrawals which may be taken.

Other Product Features
  • Policyholder choice with regards to selecting and adjusting the investment portfolios you invest into. 
  • The ability to invest into non-traditional investment options, such as hedge funds
  • The ability to make once-off contributions whenever you wish (subject to legislation), and to start, stop or amend a monthly debit order contribution over the lifetime of the investment without incurring any penalties. You may nominate one or more natural persons or trusts with natural person beneficiaries to receive any benefits that may be payable on your death
  • The Policy may be ceded as security

 

Product Charges

What will it cost?

Product Details Product Charges

Initial Administration Fee

No initial administration fee is charged.

Initial Management Fee

Certain Managers may charge an initial fee on your investment or switch into an Investment Portfolio. Click here to see Investment Portfolio List.

Financial Advisor Initial Fee

A maximum fee of 3% excluding VAT.

Annual Administration Fee

A weighted average fee is charged per policy/investment account according to the following fee scale: 

Investment Value Annual Admin Fee (excl.VAT)
From R0.0 to R1 million 0.45%
Next R500 000 0.40%
Next R500 000 0.35%
Thereafter 0.25%

The fee is levied monthly in arrears by deducting units from your underlying Investment Portfolios to the value of the investment account. An additional fee of 0.2% per annum excl. VAT will be levied for an Investment Account which contains a segregated mandate investment. 

Please note that a different fee may apply to policies taken out prior to 2015. Please refer to your policy schedule for details.

Annual Management Fee

Managers charge annual management fees, which are incorporated into the daily unit price of the Investment Portfolio. Click here to see the Investment Portfolio List.

Financial Advisor Annual Fee

A maximum fee of 1% excluding VAT.

FAQs

Hollard Linked Endowment FAQs

Find out everything you need to know about the Hollard Linked Endowment.

Can I switch out of one underlying Investment Portfolio into another within a policy?
Yes, your portfolio is flexible. You can choose to switch Investment Portfolios at any point whilst investing in the Hollard Linked Endowment.
Is there a withdrawal charge?
There are currently no withdrawal charges levied by Hollard Investments against the Hollard Linked Endowment.
What is the minimum investment for the Hollard Linked Endowment?
The minimum investment is R100,000 per policy.
Do the underlying Investment Portfolios have their own sub-minimum investment amounts?
Certain Investment Portfolios may have their own investment minimum amounts.
Can I make additional contributions?
Yes. Legislation limits the amount which may be contributed to the policy via additional contribution or recurring monthly debit order as follows:
  • During the first year after the initial investment takes place, there is no limitation on the amount which may be contributed.
  • In subsequent years, a maximum of 120% of the larger of the contributions made during either of the two preceding years may be invested. Should the additional contribution exceed this amount, the Policyholder will be required to open a new policy for which the five year restriction period will apply.
What happens if the policyholder passes away?
Your policy will pay a benefit equal to the policy value after fees and charges due, 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 until the death of the last life assured. When the last life assured passes away, the death benefit will be paid to the nominated beneficiaries for the policy. If no beneficiaries are nominated then the benefit will be paid to the estate. A beneficiary will have no interest or right to a death benefit from the policy until after the death of the last life assured.
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 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. An income tax, capital gains tax and dividends charge will be levied on the investment portfolios. Income tax and CGT is charged at a reduced rate, ranging from 15% income tax and 6% CGT, down to 0% for investments into the Hollard Prime Unit Trust Funds.
Can I withdraw from my investment?
During the first five years of the policy you may take one full or partial withdrawal (with no withdrawal charges), the value of which is limited by legislation. After five years all restrictions on the policy fall away, and you may withdraw all or a portion of the value of the policy at any time, with no limit on the number of withdrawals which may be taken.
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?
It is recommended that you appoint a financial advisor to assist you. Hollard Life in their capacity as the Administrator and the Manager do not provide financial advice, and may only supply the investor with factual or administrative information relating to the investment products and portfolios.
What is the term of the policy?
The Hollard Linked Endowment policy is open ended and as such does not have a term. Policies have a five-year restriction period from inception during which there are withdrawal limitations.

Customer Support

Contact details

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 customercare@hollardinvestments.co.za or +27 11 351 3816.
First-time Investors Existing Investors
Application Form Natural Person Death Claim Form
Application Form Trusts FSP Change
Investment Portfolio List Change of details - Natural Person
Information Document Change of details - Trusts
FICA Requirements List Change of Life Assured Details
3rd Party Payment Letter Security Cession Form
Sighting of Original Documents Outright Cession Form
Site Visit Declaration Additional investment
Cohabitation Declaration Beneficiary Nomination Form
Product Brochure Asset Transfer Form
Switch and Rebalance form
Withdrawal form
FATCA Questionnaire for Individuals
FATCA Questionnaire for Legal Entities