Hollard Fund Endowment

The investment is an investor-owned linked endowment Policy which invests into the Investment Portfolios specified by the policyholder. Hollard Life issues and underwrites the endowment policy as part of its long-term insurance business under the provisions of the Long-term Insurance Act, No. 52 of 1998, as amended.

The Hollard Fund Endowment is open-ended policy and as such does not have a term. Policies have a five-year restriction period from inception during which there are withdrawal limitations.

You may contribute to your investment via an initial once-off investment. No recurring monthly debit order contributions are permitted.

The minimum investment is R100,000 per policy. A maximum of 10 policies is permitted per investor.

Yes. Legislation limits the amount which may be contributed to the policy via an additional contribution or 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 which the five-year restriction period will apply.

When you open your investment account you can select from the range of Hollard Prime Unit Trust Funds. You may select any one or a combination of the Hollard Prime Unit Trust Funds offered and may switch between funds at your discretion. You need to monitor and review your investment portfolio selection regularly so that your investment continues to meet your financial needs.

You may cede some or all of your investment as collateral/security.

Yes, 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.

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.

No loans are permitted on the policy.

A cooling off period of 31 days applies to the policy from the date of receipt of the policy schedule (which shall be regarded as having been received within 7 days of the policy inception date). In the event you request to cool off, the amount paid back to you will be the market value of the Investment Portfolios at the time of processing the instruction and may therefore be more or less than the initial investment amount due to Investment Portfolio market movement. Any fees paid to Hollard Life and your Financial Advisor will be reversed.

Yes, your portfolio is flexible. You can choose to switch Investment Portfolios at any time, at no cost.

No, the product does not provide a guarantee on the investment value of your investment account nor does it guarantee the performance of the investment. The market value of the investment may fluctuate and go down as well as up, and past performance is not necessarily a guide to the future. The investor carries the investment and market risk which may include the possibility of losing capital.

Endowment Policies are taxed within the Individual Policyholder Fund in accordance with Section 29A of the Income Tax Act as amended from time to time. The Individual Policyholder Fund is subject to income and capital gains tax at the prevailing rates prescribed by the South African Revenue Service. Hollard Life is currently able to reduce the effective tax rate by using a portion of its available tax loss, thereby improving after tax returns for policyholders:

• During the Restricted Period of the policy, a tax recovery charge of 0% will be levied on any taxable capital gain or taxable income earned in the Investment Portfolios the policyholder is invested in.

• After the Restricted Period of the policy, the tax recovery charges will change to the prevailing individual policyholder fund tax rates. 

The effective tax rate is determined by Hollard Life and is subject to change. This could be, but is not limited to, changes in tax legislation resulting in Hollard Life being unable to use its tax position to reduce the effective rate of tax. The Hollard Fund Endowment is subject to dividend tax. This will be withheld from the local dividend portion of a distribution received from an Investment Portfolio where applicable.

Policy proceeds are paid out net of tax to the policyholder.

Your policy will pay a benefit equal to the policy value after fees and charges due, if you are 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 surviving life assured. When the last surviving 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.

It is recommended that you appoint a financial advisor to assist you. 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.