The Hestia Fixed Income Trust Account

The Hestia Fixed Income Trust Account is a joint collaboration between Zetland Trustees Limited and Business Class Group. It has been designed with simplicity and tax efficiency in mind, and has two main objectives. The first to provide its Owner with a low-cost hands-off administration account which empowers a Hong Kong Registered Trustee to purchase and hold assets on their behalf; and the second, to take advantage of Hong Kong’s corporate structures and perpetual trust laws. Hestia members can also benefit from certain tax efficiencies, without the account being considered a tax avoidance vehicle by authorities in their home country. One unique feature of Hestia is that year one set up and annual trustee fees for the duration of the investment period, are paid in full for opening account balances in excess of £50,000.

With continual changes within the global financial markets, a no frills, low cost administration platform is a valuable account for those looking to benefit from fixed income opportunities. The operators will continue to search for quality short to medium term opportunities that add value and yield to a clients’ financial plans. Looking at options within a one to five-year period, that provide stable income and high levels of capital protection. As we move to an uncertain period as the world opens up again after the pandemic, security and less volatility will be major need for short to medium term financial plans.

Our needs change as we pass through different stages of our life and investment cycles. There are those who are neither willing nor able to be exposed to the ups and downs that come with direct holdings within the global equity markets. Short-term plans need stability, and for some a need for a higher rate of interest than banks are currently offering. Longer term, there may be the need for a regular income from capital, either in retirement or in these times between jobs or careers. The search to secure income will always be there for many at certain periods through their lifetime, and the Hestia Fixed Income Trust Account delivers on its promises when utilised.

Since the Global Financial Crisis of 2007, yields on Government Bonds have been at their lowest levels for decades. Term Bank Deposits have also seen the lowest rates over the same period, the days of receiving close to 7% & 5% each year on GBP & USD deposits respectively, seems like a lifetime ago. But the search has always been on for quality assets that would produce a reasonable, secure income with little risk to capital.

The Hestia Trust Account was launched to enable members to access quality fixed income opportunities which are brought to market by industry leaders. Their products cover different industry sectors and themes covering numerous geographical locations, allowing members to diversify their portfolio from within the Trust. The account is formed around a BareTrust which is domiciled in Hong Kong, and administered by Zetland Trust Ltd acting as the Trustee and hold assets on behalf of each member. Zetland’s efficient administration coupled with thier 30+ years of fiduciary experience makes them ideally placed to deal directly with the Secured Debt & Bond issuers and holds custody of each instrument with full power to manage them, without having any equitable interest or discretion over the assets. The Administrator will hold the assets on behalf of each account holder and will make income distributions as they are received from the providers and then return capital to members at the end of the period.

Contributed by the Business Class Group -

Please note that nothing in this article constitutes or should be construed as legal, tax or investment advice or a solicitation and/or recommendation of any kind. Please consult a suitably qualified professional adviser(s) to obtain appropriate financial, legal, account, tax and other advice before making any decisions that may affect you or your personal finances or business.

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