Holiday Property Bond Assurance Ltd. Failing?

ellastonepaul

Is this business in Financial Difficulty? In late November we submitted documentation to their Isle of Man address in order to surrender our Bond. Since then, despite several emails requesting confirmation that the documentation has been received, we have had NO RESPONSE.
We took out this Bond around 13 years ago, paying £12,000, to get access to the Properties run by HPB Management Ltd. We were aware that £2,790 was immediately taken for "Sales Administattion" (aka "Commission"?!) accepting that the remaining ca£9,000 would be invested.  Last August we were advised that the Surrender Value was only  £7661.83. a 15% LOSS! I have illustrations ffrom the time of purchase showing we should get at least £9,920 after 10 years. 
It is difficult to find where our monies have been "invested" but is it not reasonable to assume that a significant part would be in Property? Commercial Property Indices over this period show at least a 15-20% GROWTH and most Bond Investments over this period have shown reasonable growth. The Financial Times report shows the performance of The Bond as being continuously in the Fourth Quartile of comparative investments. Managment charges are opaque, to say the least.
With all the current pressures on the Hospitality Industry I am concerned that the Investment Policy and Management of this Business will lead to its failure and our Money Lost.

Weighty1

It won't be invested in commercial property though, it will be invested in holiday homes, villas etc.  Have you looked at the growth of these?  Also, the current climate is probably downvaluing the portfolio as the anticipated levels of income generated from the portfolio are likely to be less than in previous years.  Thirdly, the illustration shows you *should* get back £X, not that you *will*. 

fred246

You are better googling MSE forum Holiday Property Bond. I looked at it years ago and thought Nah it's not for me. But another user tells everyone that they don't know what they are talking about because they haven't invested. Turns out he had massive arguments with them in the past and realised that the only way the bond can continue is with a continuous supply of new customers paying the introductory 25%. Interesting reading. From memory I think the investment was a standard portfolio with high charges.

ellastonepaul

Just received the following from HPB Management

HSBC Trustee (C.I.) Limited (HSBC) recently informed us that, “following a recent strategic review carried out of our business”, they have decided that they no longer wish to offer trustee services to organisations such as HPB.  In searching for a replacement, HPB Assurance Limited, issuer of HPB, found that this approach seemed to be in line with the trust divisions of most big banks who see this as a niche business that does not justify the investment needed in terms of staff technical knowledge.

None the wiser.....Isle of Man, Channel Isles........what a can of worms......and where is my Money!

fred246

I think the general feeling was that you have to write the 'investment' off and just enjoy the holidays and then pass it on to your children. The thing that struck me was that the 'user' or cleaning charge was similar to what I would expect to pay to rent a place.

Seronera

Has it gone bust yet or is this just another of those periodic outbursts of indignation because it hasn't ? You could have put your money with Neil Woodford instead I suppose.