The Access Portfolio Bond allows investors to manage a portfolio of stocks, funds, exchange traded funds (ETFs), bonds or structured products via one platform, rather than having the administrative burden of dealing with each of these holdings separately.
Investors Trust sets up the investments and manages the ongoing administration on behalf of the client.
It’s easy to switch between investments with different managers, different currencies, different asset classes, all through a central online platform.
There is an insurance element to the plan, which can have tax planning advantages for some investors.
The Access Portfolio Bond is issued in the form of a single policy.
There are 3 different charging structures available, based on policy terms of 5 years, 8 years or open-ended.
The charging term and structure is fixed at the outset of the policy, and this cannot be varied or waived once it is in force, see the FAQ for full details.
As an investor you need to be aware that there are early encashment penalties if the 5 or 8 year options are chosen and you stop the whole plan before the end of your fixed term.
There is no surrender penalty with the open-ended structure.
Investors Trust say they have a segregated portfolio structure in the Cayman Islands, which gives investors “100% security via an independent third party custodians’ nominee trust account.”
You can apply for and manage your Access Portfolio Bond online and in multiple languages.
Investors Trust Access Portfolio Bond Key Features:
Open Architecture – The plan delivers an open architecture platform which provides significant investment freedom by allowing plan holders to spread and vary their investments across a wide spectrum of asset classes, giving them the power to purchase an almost unlimited array of investments, including Stocks, Bonds, ETFs, Mutual Funds and Structured notes.
Plan holders have the option to invest by transferring existing investment holdings into their portfolio at no cost, invest with cash or build a portfolio using a combination of both. There is no restriction on the number of investments that can be added to the portfolio.
Discretionary Investment Advisor - a discretionary investment advisor can be appointed to run the portfolio bond. A discretionary investment advisor, when appointed, is responsible for the management of your portfolio including the buying and selling of investments.
Currency Options - the policy can be denominated in one of the following currencies: USD ($), EUR (€) or GBP (£).
The minimum lump sum contribution is USD 75,000 / EUR 75,000 / GBP 50,000. Additional lump- sum payments into your policy at any time. The minimum additional investment is USD 7,500 / EUR 7,500 / GBP 5,000.
Investors Trust is regulated and licensed by the Cayman’s Islands Monetary Authority.
Advisers with non-EU clients’ predominately use Access Plans.
Investors Trust is not licensed in the EU and it would be unlikely to see this product used in the UK or USA, when better, more transparent alternatives are available and investors are protected by more robust regulation.
Pensions (QROPS and SIPP)
There is no need to use the Access Portfolio Bond within a QROPS or SIPP, other than to generate more fees and commission for the salesman or adviser. The product is not regulated in the EU, so should it should not even be contemplated.
The Access Portfolios Bonds are similar to many such products on the marketplace and can be an expensive option in the wrong hands. We believe that they are outdated products aimed at the commission sales market.
Another key concern is that this is not a widely regulated product.
Investors Trust is based in a low enforcement regulatory regime, and as a small cell based company, which is unusual, we question would happen if the company got into financial difficulties.