Investors Trust S&P 500
Index Savings Plan

An independent review by our team of experts

Investors Trust is a globally recognised brand that represents the ITA Group of Companies.

ITA International Holdings is the 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.

They offer a variety of lump sum products tailored to meet the different risk profiles. Ranging from capital protected fixed income portfolios to alternative investments.

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

The Investors Trust S&P 500 Index savings plan is a contractual offshore regular savings plan.

Investors Trust S&P 500 Index plan provides investors access to 500 leading stocks representing the most widely held companies from all sectors of the economy.

They claim that the plan provides principal protection derived from structured notes provided by highly rated financial institutions and the ability to participate in stock market growth without the downside risk.

The Investors Trust S&P 500 Index also provides the flexibility to choose a plan that fits your individual needs with 10, 15 and 20 year term options.

The key features of the S&P 500 Index savings plan are as follows:

The S&P 500 Index is a regular contributions plan.
The plan is only available in one currency, that is USD ($).
Investors Trust claims to offer 100% participation in the growth of the S&P 500 Index.
The available investment terms of the S&P 500 Index savings plan is 10, 15, and 20 years.
The plan is marketed as 'principal protected'.

Let's have a brief look at what exactly the Investors Trust S&P 500 Index savings plan entails:

Topic	Description

Currency	USD $

Minimum Contribution Amount	USD 2,400 per annum

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

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

Investment Terms Available	10, 15 and 20 years

Principal Protection	10 Year Term: 100% 15 Year Term: 140% 20 Year Term: 160%

Loyalty Bonus (Percentage of Total Contribution During the Period)	1 - 10 Years: 7.5% 11 - 15 Years: 7.5% 16 - 20 Years: 5.0%

Issue Age	10 Year Term: ages 18 - 60 15 Year Term: ages 18 - 55 20 Year Term: ages 18 - 50

Guaranteed Death Benefit	In the event of a relevant death, the standard amount payable will be 101% of the Account Value.

The S&P 500 Index savings plan also allows for free partial withdrawals after the completion of the initial period, subject to maintaining USD 2,400 surrender value (while free partial withdrawals are available, they negate the guarantee).

The charges of Investors Trust S&P 500 Index can be summarised below:

Topic	Description

Annual Administration Charge	10 Year Term: 2.0% per annum 15 Year Term: 1.7% per annum 20 Year Term: 1.1% per annum

Policy Fee	USD 10 monthly

Structure Fee	0.125% monthly of account balance

Surrender Charge	The value of the remaining initial units.

NOTE:

Monthly payments are only available with credit cards and direct debit.
There are a lot of exceptions to their guaranteed protection. This protection includes loyalty bonuses. All premium payments due must have been received within the grace period, with no contributions decreases or partial withdrawals, to qualify for guarantee. The underlying principal protection is derived from structured notes provided by highly rated financial institutions. The investor is facing issuer/counterparty risk of these institutions. An insolvency of these institutions could lead to a partial or total loss of the capital invested by the investor.
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. Loyalty bonus will be paid after years 10, 15 and 20. The S&P 500 10 year plans are not eligible for loyalty bonus.
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

> Good brand name

> Potential for better than bank rate return if all contributions are made throughout the term

> Lack of flexibility may encourage discipline of saving

The Cons

> Inflexible

> Opaque and complex charging structure

> Expensive way to invest

> Easily mis-represented at the point of sale

I am 28 years old, am I eligible for this plan?

Yes, you would be eligible for the plan subject to the jurisdiction you come under.

However, in general, all 3 terms of the Investors Trust S&P 500 Index savings plan can be issued to someone your age:

10 Year Term: ages 18 - 60
15 Year Term: ages 18 - 55
20 Year Term: ages 18 - 50

What is the minimum I can invest in the S&P 500 Index savings plan?

The minimum contribution amount for the S&P 500 Index savings plan is USD 2,400 per annum.

Additional increases can be made.

The minimum increase amount allowed is USD 2,400 per annum (As Rider).

Is the Cayman Islands a safe jurisdiction?

The Cayman Islands lack regulatory enforcement and protection for investors which is a red flag as far as we are concerned - think carefully about what recourse you would have if the company were to suffer any financial set-backs.

Think before you sign up for a 15 year savings commitment

Someone tried to sell me this and I just couldn't imagine where life would take me 15 years down the line to commit to it.

Especially since there is no flexibility if circumstances require me to access it sooner.

He pushed on about the guaranteed return and so on, but I did my research and I know all 'guaranteed returns' have a catch.

I took out the S&P500 savings plan and was quite happy for the first year

After it had been a year for the policy, I started to realise it was totally inflexible, expensive and NOT what I wanted at inception.

I wanted something better than a bank account but with lower risk (that's what this was sold to me as by the IFA).

I now have to keep going with it for the term to avoid expensive penalties and losses.

Expert assessment of Investors Trust S&P 500 Index savings plan

Although this product is arguably more attractive than other contractual savings schemes, it has now been superseded by more cost effective, flexible and less complex options.

If you already have an Investor Trust S&P 500 Index savings plan from Investors Trust 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.

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 S&P 500
Index Savings Plan

An independent review by our team of experts

REVIEW SUMMARY