Hollard Endowment Plan
Reach your savings goals with tax and estate planning benefits
About Hollard Endowment Plan
Who is it for?
Anyone with a marginal tax rate of 30% or more who is looking to invest for five years or more.
Minimum investment of
R100 000 lump sum per policy.
Features & benefits
- Tax efficiency – with tax rates lower than the top marginal tax rate, and proceeds are paid out net of tax.
- More investment choice – access a range of investment options, including unit trust funds, hedge funds, and private share portfolios.
- Simplify your estate planning – with death benefits paid directly to your nominated beneficiaries.
- Unlimited offshore exposure – currently there are no limits on allocating funds to offshore portfolios.
- Flexibility – alter your endowment plan portfolio choices at any time, at no extra cost.
- Available cash if you need it – one withdrawal is allowed within the first five years and unlimited withdrawals after the five-year period. No withdrawal penalties apply.
Explained fully
A detailed document explaining all the rules and process information of our Endowment Plan.
Need to get in touch with us?
Call Hollard Investments on
0860 202 202 or email
customercare@hollardinvestments.co.za
Visit our secure online portal to invest now or manage your investments.
Have a complaint?
Additional product resources
Fees and charges
View our table with the fees charged based on the investment value.
How to invest
Follow our easy steps on how you can invest with Hollard Investments.
Frequently asked questions
Go to our frequently asked questions to help you with any queries you may have.
Fees and charges
A fee is charged on the value of your investment account as follows:
Investment Value | Initial Fees (excl. VAT)Hollard initial administration fee | Initial Fees (excl. VAT)Transaction fees | Annual Admin Feeif fully invested in 3rd Party Manager Funds - weighted fee (excl. VAT) | Annual Admin Feeif fully invested in Hollard BCI Unit Trust Funds - flat fees (excl. VAT) |
|---|---|---|---|---|
First R1.5 million | 0% | 0% | 0.50% | 0.25% |
Next R3.5 million | 0% | 0% | 0.20% | 0.25% |
Thereafter | 0% | 0% | 0.15% | 0.25% |
Additional fee of 0,20% is charged on share portfolio accounts. | ||||
Additional fee of 0,45% is charged on portfolios that make use of Hollard's foreign allowance. Please contact us for more information. | ||||
Initial Fees (excl. VAT)
Hollard initial administration fee
First R1.5 million
0%
Next R3.5 million
0%
Thereafter
0%
Additional fee of 0,20% is charged on share portfolio accounts.
Additional fee of 0,45% is charged on portfolios that make use of Hollard's foreign allowance. Please contact us for more information.
Initial Fees (excl. VAT)
Transaction fees
First R1.5 million
0%
Next R3.5 million
0%
Thereafter
0%
Additional fee of 0,20% is charged on share portfolio accounts.
Additional fee of 0,45% is charged on portfolios that make use of Hollard's foreign allowance. Please contact us for more information.
Annual Admin Fee
if fully invested in 3rd Party Manager Funds - weighted fee (excl. VAT)
First R1.5 million
0.50%
Next R3.5 million
0.20%
Thereafter
0.15%
Additional fee of 0,20% is charged on share portfolio accounts.
Additional fee of 0,45% is charged on portfolios that make use of Hollard's foreign allowance. Please contact us for more information.
Annual Admin Fee
if fully invested in Hollard BCI Unit Trust Funds - flat fees (excl. VAT)
First R1.5 million
0.25%
Next R3.5 million
0.25%
Thereafter
0.25%
Additional fee of 0,20% is charged on share portfolio accounts.
Additional fee of 0,45% is charged on portfolios that make use of Hollard's foreign allowance. Please contact us for more information.
A minimum annual administration fee of R115.00 applies.
- Your financial advisor may charge you an initial and ongoing fee. These fees are negotiable between you and your advisor. A maximum of 3% (excl.VAT) applies for financial advisor initial fees, and a maximum of 1% per annum (excl.VAT) applies for financial advisor ongoing fees.
- For more information, please refer to the Investment Portfolio list.
Tax rates
Tax Rates | |
|---|---|
Income Tax Rate | 30% |
Capital Gains Tax Rate | 12% |
Dividends Withholding Tax Rate | 20% |
Income Tax Rate
30%
Capital Gains Tax Rate
12%
Dividends Withholding Tax Rate
20%
Access the Hollard BCI Fund factsheets, latest and historic unit prices, investment insights, and more.
Find all the forms and documents you’ll need to invest in the Hollard Endowment Plan here.
Invest now by following these easy steps
Hollard will always recommend that you consult a professional, qualified financial adviser to help you choose suitable products and portfolios for your specific financial needs. Comprehensive financial planning goes far beyond simply choosing a product. It encompasses many elements that all work together towards a successful financial outcome.
If you would like to proceed without the assistance of a financial advisor, please follow the steps below:
- Decide how much you want to invest and into which Investment Portfolios.
- Complete an investment quotation.
- Send the completed and signed investment quotation, application form and required documentation to:
Fax: 011 351 3816
Email: customercare@hollardinvestments.co.za
Find the best Hollard Investment solution for you. Get an online quotation today.
Frequently asked
questions
Can I switch underlying investment portfolios within a policy?
Yes, your endowment policy investment account is flexible. You can choose to switch Investment Portfolios at any time at no cost to you.
Is there a withdrawal charge?
No, there are no withdrawal charges levied.
Do the underlying investment portfolios have their own sub-minimum investment amounts?
Certain investment portfolios may have their own minimum investment amounts. Please refer to the Investment Portfolio list for details on all available options.
Can I make additional contributions?
Yes, however, legislation limits the additional amounts that can be contributed to your endowment policy in the following ways:
During the first year after the initial investment takes place, there is no limitation on the additional contribution amounts.
In subsequent years, a maximum of 120% of the larger contributions made during either of the two years prior may be invested. Should the additional contribution exceed this amount, you will be required to open a new policy for which the five-year restriction period will apply.
What happens if I pass away?
If you pass away, your policy will pay a benefit equal to the policy value (less fees and charges), if you're both the policyholder and the nominated life assured. If there are other lives assured by the policy, the policy will continue until the death of the last surviving life assured. Once the last surviving life assured has passed away, the death benefit will be paid to the nominated beneficiaries. If there are no beneficiaries, the benefit will be paid to the estate.
Are loans permitted against the policy?
No, loans are not permitted against the policy.
What are the tax implications of this investment?
Endowment policies underwritten by Hollard Life 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 legislation. Policy proceeds paid out to policyholders are net of tax.
Any amendments to the tax legislation may affect the withdrawal value of your endowment policy. Policyholders should obtain independent tax advice, relevant to their circumstances, prior to investing.
The endowment policy is subject to dividend tax. This will be withheld from the local dividend portion of a distribution received from an investment portfolio.
Can I withdraw from my investment?
During the first five years of the endowment policy, you can make 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 there is no limit on the number of withdrawals you can make, and you may withdraw everything from your policy or a portion of the value of the policy.
Can the policy be used as security/collateral?
Yes, security and outright cessions are permitted.
Does a cooling-off period apply?
There is a cooling-off period of 31 days applied on a Hollard Endowment Plan Policy. Any fees paid to Hollard Life and your financial advisor will be reversed.
What is the term of the policy?
The endowment policy is open-ended and does not have a term. Policies however have a five-year restriction period from inception during which time there are withdrawal limitations. Once the restricted period ends, there is no restriction on the value you may withdraw or the number of times you may withdraw from your policy.
Do I need a financial advisor to invest in this product?
Hollard Life in its capacity as the Administrator does not provide financial advice and may only supply factual or administrative information relating to investment products and portfolios.
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Why invest with
Hollard Investments?
Hollard Investments is part of the privately-owned Hollard group. Through partnerships and enabling our clients to create and secure better futures, we achieve what is at the core of Hollard Investments’ purpose. We strive for a more efficient and accessible way for your money to get you to where you want to be, and we are committed to shared success with financial advisors and investors. We’ve got this, together.
Have some questions or looking for further insight?
Send us your details and we will give you a call.
