HANSARD GROUP

AROUND THE WORLD, AROUND THE CLOCK

Important notice regarding the Global Property 80% Protected Fund

This notice is to advise you that all share classes of the Global Property 80% Protected Fund have recently become 100% allocated to cash. This fund is the underlying asset to the Hansard Nomura Global Property 80% Protected fund links available in HIL and HEL. The move to cash follows a prolonged fall in the value of property markets globally and is necessary to ensure the Protected Net Asset Value of the fund is maintained. The mechanism which determines the fund’s weighting between equity and cash, Constant Proportionate Portfolio Insurance (CPPI), has worked very effectively through the life of the fund and in particular during the sharp decline in global property markets, ensuring that the NAV of each of the share classes of the Fund have not fallen below the respective protected level.

Since inception, the fund has outperformed the S&P Citigroup Property index by 28%, having reached a highest NAV of 118.16 and a resulting protected NAV of 94.53, which compares favourably to the fall in values experienced by most property funds.

Owing to the continued decline in property markets, it is envisaged that these funds will remain invested 100% in cash for the foreseeable future until the fortunes of the global property markets improve and the CPPI mechanism dictates that a return to equity content within the fund is appropriate. As such, the Directors of the fund have decided to temporarily suspend subscriptions until further notice. During this period policyholders will have full access to their investment as there is no limit or restriction on liquidity.

This action affects the following Hansard fund links which are now closed to new business:

MB32, MC114 and MX43 in HIL and HEL, and MN02 (available in HEL only).

Juliet Holmes
Reply to: juliet.holmes@hansard.com

The information set out herein has been obtained from various public sources and is sent to you by way of information only. Hansard can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.

Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.