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REVIEW SUMMARY

Investors Trust Fixed Income Portfolio

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. 
Overview
FAQ
Customer Reviews
Expert Verdict

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:

  1. 15 year variable rate
  2. 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.



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.

Very high commissions

I was absolutely unaware of my IFA's commissions that were going to hit me and was initially only looking at the charges they state on their website - really wish I had read this expert verdict back then.

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 £250,000 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.

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