Investors Trust
Fixed Income Portfolio

An independent review by our team of experts

Investors Trust is a global brand representing the ITA Group of Companies.

ITA International Holdings is the ultimate parent company of Investors Trust Assurance SPC based out of the Cayman Islands, ITA International Insurer, a Puerto Rico based and licensed company, both rated “A-” by AM Best, and ITA Asia Limited, a Labuan-licensed company based in Malaysia.

Investors Trust work in Cayman Islands, Malaysia and Puerto Rico with service points in Dubai, Hong Kong, Uruguay and a corporate support office in the U.S.

Investors Trust is licensed and regulated by the Cayman Islands Monetary Authority and essentially specialise in the provision of investment–linked insurance.

Investors Trust says that the Fixed Income Portfolio provides high current fixed income returns with fixed and variable rate options.

The product is supposed to be suited to long-term investors and investors looking for low risk investment allocation in their portfolio. Investors Trust markets the Fixed Income Portfolio as an alternative to low bank time deposit rates.

The Fixed Income Portfolio has two variables, namely:

15 year variable rate
3,5,7 and 10 year fixed rate

Let's summarise the key features and charges of each of these variables under the Fixed Income Portfolio:

1. 15 year variable rate:

Topic	Description

Currency Option	USD $

Minimum Contribution	USD 2,400 per annum

Minimum Additional Amount	USD 2,400 per annum (As Rider)

Interest Rate	12-Month US LIBOR + 1.50% per annum, adjusting annually Minimum rate 3.5% Maximum rate 6%

Modal Premium	Annually, Semi-annually, Quarterly, and Monthly

Investment Term	15 years

Principal Protection	100%

Annual Administration Charge	1.125% years 1 - 15

Bid/Offer Spread	NIL

Issue Age	18 - 70 years

Loyalty Bonus	7.5% of contributions years 1 - 10 5% of contributions years 11 - 15

The Fixed Income Portfolio (15 year variable rate) has no policy fee during the first year and $7.00 monthly afterwards.
The surrender charge is equal to the sum of the annual administration charges due for the remaining contract years at the time of surrender.
Investors Trust allows free interest withdrawals after the completion of second year. Capital withdrawals allowed after the completion of the second year, subject to maintaining USD 2,400 surrender value. Capital withdrawals trigger automatic decrease in interest rate to 3.5% per annum.
In the event of a relevant death, the standard amount payable will be 101% of the Account Value.

2. 3,5,7 and 10 year fixed rate:

Topic	Description

Currency Option	USD $

Minimum Contribution	USD 10,000

Minimum Additional Amount	USD 10,000 (As Rider)

Interest Rate	3 Year Term: 1.75% 5 Year Term: 2.25% 7 Year Term: 3.0% 10 Year Term: 3.6%

Investment Terms	3, 5, 7 & 10 years

Principal Protection	100%

Administration Charge	NIL

Issue Age	18 - 85 years

The policy fee for this variable of the Fixed Income Portfolio is $7.00 monthly.
In the event of a relevant death, the standard amount payable will be 101% of the Surrender Value.

The liquidity of this variable is the percentage of initial investment, subject to surrender charges as shown below:

3 Year Term
End of year	1 - 35%
End of year	2 - 70%
End of year	3 - 100%

5 Year Term
End of year	1 - 20%
End of year	2 - 40%
End of year	3 - 60%
End of year	4 - 80%
End of year	5 - 100%

7 Year Term
End of year	1 - 0%
End of year	2 - 10%
End of year	3 - 20%
End of year	4 - 40%
End of year	5 - 60%
End of year	6 - 80%
End of year	7 - 100%

10 Year Term
End of year	1 - 0%
End of year	2 - 5%
End of year	3 - 10%
End of year	4 - 15%
End of year	5 - 30%
End of year	6 - 45%
End of year	7 - 60%
End of year	8 - 75%
End of year	9 - 90%
End of year	10 - 100%

The details of the surrender charges associated with this variable of the Fixed Income Portfolio can be found in the FAQs section of this review.

NOTE:

Interest rate drops to minimum rate of 3.5% if the plan is not current or capital withdrawals are made.
Monthly payments are only available with Credit Cards and Direct Debit.
All premium payments due must have been received within the grace period, with no contributions decreases or partial withdrawals, for the loyalty bonus to take effect.
The issue age limit may vary depending on the jurisdiction.
We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

Academic evidence only shared with a select few firms across the world
A real-life example of why you should never try to outguess the market
Why a fund's past performance is not enough to predict future returns
Why you need to focus on what you can control and why this leads to a better investment experience
Why you should accept the markets for what they are
What can impact behaviour and make people seek instant gratification

The Pros

> Has a loyalty bonus in the 15-year version

The Cons

> Risk of hidden commission

> Potentially inflexible

> Commonly mis-used

What are the main benefits offered by the Investors Trust Fixed Income Portfolio?

100% Principal Protected (subject to surrender charges)
Low risk investment
Steady Income
Low minimums
Low surrender charges
Tax exempt structure (potentially - depending on your personal circumstances).

What are the surrender charges of the Fixed Income Portfolio's fixed rate terms?

The surrender charges of each term can be summarised below:

3 Year Term
End of year	1 - 3.0%
End of year	2 - 2.0%
End of year	3 - 0.0%

5 Year Term
End of year	1 - 4.0%
End of year	2 - 3.0%
End of year	3 - 2.0%
End of year	4 - 1.0%
End of year	5 - 0.0%

7 Year Term
End of year	1 - 5.0%
End of year	2 - 5.0%
End of year	3 - 4.0%
End of year	4 - 3.0%
End of year	5 - 2.0%
End of year	6 - 1.0%
End of year	7 - 0.0%

10 Year Term
End of year	1 - 6.0%
End of year	2 - 6.0%
End of year	3 - 5.5%
End of year	4 - 5.0%
End of year	5 - 4.5%
End of year	6 - 4.0%
End of year	7 - 3.0%
End of year	8 - 2.0%
End of year	9 - 1.0%
End of year	10 - 0.0%

What's the guaranteed death benefit for the Fixed Income Portfolio?

In each case, in the event of a relevant death, the standard amount payable will be 101% of the account value.

However, on the 15 Year Variable Rate Regular Contribution Plan, the guaranteed death benefit shall not be payable if the insured dies within the first 2 years of the policy issued date from an illness or physical condition that pre-existed the issue date or if the insured commits suicide.

If all required contributions are not paid within the grace period, this benefit shall terminate and will not be reinstated.

Expert assessment of Investors Trust Fixed Income Portfolio

Used in the right circumstances, offshore bonds can provide attractive tax benefits.

However, in many instances, they can be mis-used by commission based salespeople to extract high levels of commission.

If you already have an Investors Trust Fixed Income Portfolio (FIP), and it is worth £500,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want. This product is commonly mis-used and potentially inflexible.

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or, representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by AES to be reliable and AES has reasonable grounds to believe that all factual information herein is true as at the date of issue. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorised reproduction or transmitting of this material is strictly prohibited. AES accepts no responsibility for loss arising from the use of the information contained herein.

‘AES’ refers to the AES Group’s separate but affiliated entities generally, rather than to one particular entity. These entities are AES Middle East Insurance Broker LLC registered with the UAE Ministry of Economy, United Arab Emirates, Licence no. 571368, and Commercial Registration no. 75162 and regulated by the UAE Central Bank license no. 189; AES Financial Services Limited, incorporated and registered in England and Wales with company number 06063185, authorised and regulated by the UK Financial Conduct Authority FRN: 464494; AES Financial Services (DIFC) Ltd, registered in the Dubai Financial Centre (DIFC) as a foreign company, license no.2128, and regulated by the Dubai Financial Services Authority (DFSA) Reference No F003476; AES International Limited, a private company incorporated and registered in the British Virgin Islands with company number 1839872; AES International Global Limited, a private company incorporated and registered in the British Virgin Islands with company number 1887885. Please visit our authorisations page for further information on regulation, redress and accessibility.

If you are outside the UK and we advise you or carry out other business, nearly all the rules, regulations and arrangements made under the UK regulatory regime (including the rules made by the FCA and the dispute resolution process provided by the UK Financial Ombudsman Service) will not apply to most aspects of the service you receive, such advice or business being provided from outside the UK. You should therefore clearly understand such rights and protection as are afforded in the jurisdiction where you receive advice. Local law, regulation and redress processes will apply in almost all cases, and will be different from that of the UK.

RISKS

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than the capital invested. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. For further information, please click here.

Investors Trust
Fixed Income Portfolio

An independent review by our team of experts

REVIEW SUMMARY