Who Are:
Investors Trust?
Investors Trust is the global brand representing the ITA Group of companies. ITA Group is an international group of insurance companies and subsidiaries in multiple jurisdictions around the world which aims to supply investors with access to the global markets through an array of unit-linked investment products.
The 3 jurisdictions from which Investors Trust can issue policies includes: Investors Trust Assurance SPC based out of the Cayman Islands, and rated A- (excellent) by AM Best: ITA Asia Limited, a Labuan licensed company based in Malaysia: and ITA International Insurer, a Puerto Rico based and licensed company. With other offices providing regional support in Hong Kong, Dubai and Montevideo, plus Miami. With multiple jurisdictions to choose from, along with a wide range of investment solutions, Investors Trust provides international investors with endless possibilities. Investors have the power to build a plan that fits their individual needs.
***Some of these products may have commissions built directly into them. If you've been advised to consider an Investors Trust investment policy reach out to us to explore if we can establish the policy at a lower cost.
Kevin's Review:
Investors Trust offers some of the most straight forward investment accounts available in the international market.
Their S&P500 policy seems to be the most prominent due to it's simplicity and particularly appeals to first-time investors simply looking to build wealth over a fixed period.
If you want a headache free investment with no management requirements then Investors Trust might be a good option for you, however, this simplicity does bring limitations.
Regular Savings Plan:
Evolution
The Evolution family of savings plans offers flexibility for investors to save either on a non-contractual (flexible) or contractual basis. These unit-linked savings plans aim to assist investors in saving for the future, providing adaptability with low minimum premium levels.
Investors can choose from a diverse range of nearly 300 funds offered by major global fund management names, all of which are directly held funds without additional layers of cost.
There are no extra charges for switching between funds. While the Investors Trust Evolution is exposed to market risks as a unit-linked regular savings plan, effective management of the investment strategy and guidance from an investment adviser can enhance the growth in fund values.
The Evolution Plan is available in USD, GBP, and EUR denominations. For the contractual plan, the minimum monthly deposit is $/GBP/Euro 100, with a minimum term of 5 years and a maximum of 25 years. Evolution Plus and Select non-contractual plans have no specific term requirement, only needing the fund value at the end of the first year to be greater than $10,000.
In the case of full early encashment for the Evolution contractual plan, surrender charges are applicable, but Investors Trust waives these penalties after the plan has been active for 15 years. Regular withdrawals and partial surrenders, free of penalty charges, are allowed after the initial period, provided there are sufficient accumulation units available.
For Evolution Plus and Select, there are no surrender charges or penalties after the plan has been in force for 1 year, offering a flexible option for clients with changing financial needs or shorter-term savings goals.
For the Evolution contractual plan, a charge of 1.9% per year is applied to the expected premiums based on the value of the initial units, deducted monthly for the first 10 years, and subsequently reduced to 0.35% per annum. Additionally, there is a $7 policy fee deducted in arrears.
An asset management charge of 1.5% per year, based on the policy value, is deducted monthly. Evolution Plus incurs a clean 1.9% per annum charge and a $10 monthly policy fee. Evolution Select has a 1.5% per annum charge, the same $10 monthly policy fee, and an extra 1% per annum charge based on the plan value for the first 5 years.
Underlying fund charges, determined by fund managers, include annual management charges, performance fees, bid-offer spreads, and/or switching fees, ranging between 0.5% and 3%.
Investors Trust Evolution plan offers a welcome bonus, adding extra percentage points (up to 105%) to every premium paid throughout the plan's term. A loyalty bonus of 7.5% of premiums paid is granted after 10 years, followed by 5% every five years. These bonuses are contingent on receiving all expected regular premiums.
The Evolution Plus and Select do not receive additional bonus units during the plan term or at maturity.
Before committing to an Investors Trust Savings plan, consider factors such as surrender penalties for early encashment, as surrendering early may result in receiving significantly less than the invested amount. The plan is not suitable for short-term financial goals. If unsure about maintaining high monthly premiums, it's advised not to commit, as fees depend on the initially agreed premium.
For more flexibility in terms and premiums, Evolution Plus and Select are recommended options.
Regular Savings Plan:
S&P500
The S&P500 family of savings plans offered by Investors Trust provides investors the opportunity to save over 10, 15, or 20 years, with returns linked to the performance of the S&P500 index. These unit-linked savings plans are designed for investors aiming to save for the future, featuring low minimum premium levels.
Investors can only invest in the S&P500 Index in USD, choosing the term that aligns with their financial goals. The S&P500 index comprises the largest 500 companies in the USA. The Investors Trust S&P500 is a unit-linked regular savings plan, exposing investors to market risks on the underlying funds. However, the plan offers guaranteed returns of 100% at 10 years, 140% at 15 years, and 160% at 20 years, providing a safeguard against significant market movements as the maturity date approaches. This feature enables investors and their advisers to target specific goals, such as educational expenses or retirement planning.
The Investors Trust S&P500 plans can only be denominated in US Dollars. The minimum deposit for the contractual term of the plan is $/GBP/Euro 200 per month, with a minimum term of 10 years and a maximum of 20 years for the contractual plan.
For early access to funds on the S&P500 savings plan, there is limited accessibility without impacting plan benefits. If premiums are reduced or stopped for more than 90 days, or a partial surrender is taken during the plan's term, the guaranteed return will be forfeited. Opting for a full early encashment incurs penalties through surrender charges linked to the policy's term, resulting in a low surrender value during the early years.
For Investors Trust S&P500 savings plans, an annual charge ranging between 1.1% and 2.0% is applied to the expected premiums, based on the value of the initial units. This charge is deducted monthly and is determined by the plan's term. Additionally, there is a $10 Policy fee deducted in arrears from the policy.
A Yearly Structure fee is imposed based on the policy value, deducted monthly at a rate of 1.5% per year. Notably, there are no other underlying fund charges associated with the S&P500 savings plans.
Investors Trust S&P500 plans offer a welcome loyalty bonus for maintaining contributions for more than 10 years. This includes a loyalty bonus of 7.5% after 10 years, an additional 7.5% after 15 years, and 5% after 20 years, providing a regular boost to savings. Both loyalty and maturity bonuses are contingent on receiving all expected regular premiums.
Potential investors should consider that S&P500 savings plans are contractual, with a fixed policy term. Surrendering early may result in significantly lower returns than the initial investment due to early encashment penalties. This plan is not suitable for short-term financial goals, and committing to a high monthly premium should be avoided if uncertainty exists regarding maintaining that level for the plan's duration.
Investors seeking more flexibility in terms and premium payments may find the Evolution savings plan range from Investors Trust a more suitable option.